Abstract

The aim of the article is to evaluate the influence of innovation on economic dynamics in the context of individual factors in Europe in general and Ukraine in particular.  The results of the analysis.  Research and innovations defined as one of five established by the European Commission priority activities that have guided European countries to achieve the aims of economic development strategy. In the article investigated the position of 36 European countries based on their ranking by value the composite index of innovation and terms of GDP per capita at purchasing power parity (at constant prices in 2011, expressed in US dollars). Developed rating used to assess the relationship of innovation and economic development of individual countries in 2010-2016.by determining the coefficient of Spearman’s rank correlation. The calculated value of the index ranged from 0.899 to 0.910 in different years, which confirms the high level of dependence between two replaceable analyzed. Analytical grouping by the value of the composite index of innovation demonstrated a direct relationship between the level of innovation and economic development by GDP per capita PKS. It is detected a reduction in mean GDP per capita for the group of countries with the highest innovation index. This fact explains the increased risk of such phenomena as financial “bubbles” speculative capital flows in high-tech areas, the emergence of semi-legal businesses whose presence is characterized by the most powerful economies.  Detailing the impact of individual groups of factors on GDP per capita using correlation and regression analysis allowed to isolate the most significant of them, which further contribute to the development directions of improvement of organizational and economic mechanism of innovation. Found that the most significant factors influence the level of economic development of the innovation analyzed for a set of European countries is the dynamics of belonging to the group “Innovation-friendly environment”. In contrast to Europe, where factors have been identified with low communication of performance indicators (GDP per capita in PPP terms) in Ukraine low density of such a connection was established groups of indicators blocs “Innovators” and “Linkages” and the most significant correlation between economic and innovative development observed in the group of indicators  “Intellectual Assets”. Conclusions and directions of further researches. The evaluation of the relationship indicators of innovation and economic development in Europe confirmed the hypothesis of the high dependence of these parameters. Identified trends show that the foundation to improve the economy and create conditions for ensuring competitive advantage is the implementation model innovation.  Investigation of quantitative parameters influence the innovation factor in the level of economic development of Europe in general and Ukraine in particular, makes it possible to identify the strengths and weaknesses of the implementation of innovative processes in the region, identify untapped reserves of economic growth by improving the efficiency of innovative potential that create conditions for the reduction of the uneven development of states and formation of economy based on knowledge. Realization of model of economic growth by stimulating innovative changes requires the development and use of mechanisms of transformation of innovation driving force for the effective functioning of the economic system that is the subject of further deepening research problems raised.  

Keywords: innovations, innovative development, economic growth, European countries, rating correlation connection

JEL Classification: O11, O33, O52, O57.

Cite as: Smoliy, L., Revutska, A., & Novak, I. (2018). Influence of innovation factor in economic dynamics in Europe. Marketing and Management of Innovations, 1, 247-258. https://doi.org/10.21272/mmi.2018.1-18

This work is licensed under a Creative Commons Attribution 4.0 International License

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