The Innovation Potential Determinants Of The EU(28) Countries: Role Of Exports, Imports And High-Tech Exports In The Context Of Global Enterprise Development

Abstract :

Innovation is considered as a major driver in improving enterprise activities, with direct impact on the long-term economic growth of any nation. In this backdrop, the study was devoted to examining the impact of the cross-border activity of enterprises on the innovation potential of the EU(28) countries over the years 2011-2018 in the context of global enterprise development. This article was secondary focused on the deeper analysis of the following variables – the Global innovation index, Export, Import and High-tech exports indicators on average during the selected years. Secondary data were retrieved from the publicly available reports, as well as, the Eurostat database. By using the regression analysis, we dedicated to estimating the relationships between the independent variables (High-tech export, Import and Export) and dependent variable (Global innovation index). The medium-strong impact of all independent variables (using linear regression model) on innovation potential was confirmed (p<0.01). Moreover, the results suggested that indicator High-tech export have a more significant impact on the global potential of EU member countries (on average 0.4652). In accordance with findings, we recommend improving the business initiatives in the process of creating high-tech products to increase the cross-border country productivity and innovation potential of firms and countries.