Research and development in post-transition: The case study of Western Balkan countries

Nikoloski, Dimitar and Pechijareski, Ljupcho (2015) Research and development in post-transition: The case study of Western Balkan countries. SEER Journal for Labour and Social Affairs in Eastern Europe, 18 (2). pp. 231-240. ISSN 1435-2869

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The research and development (R&D) represent a crucial input to the innovation process and encompass the premarket activities performed by a number of agents such as: public scientific institutions, universities, inventors, and firms. Although different in nature and funded by various sources, R&D expenditures significantly determine the innovation capacity of a given country. The issue of a suboptimal allocation of resources to R&D in a free market economy due to the appropriability problem, high amount of fixed costs and related uncertainty has been widely elaborated in the literature. In this context, there are various policy measures that can be undertaken for correcting market failure and solving the problem of R&D underprovision. The low innovation potential of post-transition countries including Western Balkan countries (WBC) may inter alia stem from the insufficient capacity to provide conditions for efficient R&D. Namely, the long process of transition in this group of countries has had tremendous economic, political and social impact. As a consequence, the Western Balkan countries experienced erosion of their R&D potential, while their national innovation systems remained underdeveloped. Hence, the aim of this paper is twofold: First, to explore the scope and nature of R&D in WBC as determinants of their innovation capacity and, second to assess the impact of R&D on the economic development in the region. For this purpose we apply a panel data analysis in order to relate the R&D indicators to those of the economic development and growth in the WBC. As a consequence, we expect to come up with policy recommendations that will contribute to better R&D performance and will assist transformation of the WBC into ‘innovation learners’.

Item Type: Article
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Economics
Depositing User: Mr Dimitar Risteski
Date Deposited: 08 Dec 2019 14:15
Last Modified: 08 Dec 2019 14:15

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