The Synergy Between Digitalization and the Level of Research and Business Development Allocations at EU Level

• Published in: Studies in business and economics (Romania) Vol. 17; no. 3; pp. 5 - 17
• Main Authors: Aivaz, Kamer-Ainur, Tofan, Ionela
• Format: Journal Article
• Language: English
• Published: Sciendo 01.12.2022
• Subjects: computer and Internet use; digitalization; panel; research and development/R&D
• ISSN: 2344-5416; 2344-5416
• DOI: 10.2478/sbe-2022-0042

In an era in which technological progress is creating new economic perspectives, exploring interdependencies and finding the dimension of the connection between ICT skills and the R&D dimension are of particular interest. It is somewhat universally accepted that ICT development actively helps the growth of R&D potential in a general sense and that innovation stimulates new developments in the ICT sphere. This study suggests a statistical measuring of this connection and it identifies a quantifiable corellation between R&D allocations and the increase of computer and Internet use at companies’ level. The econometric analysis of the available data at European countries’ level over the 2012-2021 period was performed using the panel method, which allowed the estimation of a regression relationship between the chosen indicators. The identified connection is one of direct proportionality between increased R&D allocations and increased digitalization and ICT skills in businesses.