Approach to Determining the Science and Innovation Funding Impact on the Socio-Economic Development of the EU Countries and Ukraine

Ihor MATYUSHENKO1, Valery REZNIKOV1, OLGA TOFANIUK2 and ALONA ZINCHUK2

1 Department of Foreign Economic Relations and Touristic Business in V.N. Karazin Kharkiv National University, Kharkiv, Ukraine

2 Finance, Accounting and Taxation Department in National Aerospace University “KhAI”, Kharkiv, Ukraine

 

Abstract

The study reveals the approach to determining the impact of funding of science and innovation on the socio-economic development of the EU countries and Ukraine. The paper uses the Cobb-Douglas production function for analysis. The given factor model reveals the dependence of GDP on Government budget allocations for R&D and Global Innovation Index. The models also analyze the impact of each of the GII sub-indices on the socio-economic development of countries. The calculations were carried out for 28 EU countries and Ukraine for 2014-2020.

Keywords: Gross domestic product (GDP), Global Innovation Index (GII), Sub-index, Government budget allocations for research and development (R&D)
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