| Abstract [eng] |
80 pages, 8 tables, 10 pictures, 95 references The main goal of this thesis is to evaluate the impact of innovation on economic growth in Lithuania, Latvia, and Estonia. The work consists of three main parts; the analysis of literature, the research and its results, conclusion and recommendations. The literary analysis defines the concept of innovation, reviews the connection between innovation and theories of economic growth, presents the impact of innovation on economic growth, and conducted empirical research. After literary analysis, the author conducted empirical research in order to analyse if innovation potential has an impact on the long-term economic growth of Baltic countries. Correlation analysis, the Granger causality test, and multiple regression were applied during the research. The research revealed that innovation potential has a positive impact on the economic growth of Baltic countries. Economic growth in Lithuania is determined by foreign direct investment, number of R&D researchers, number of patents, and workforce. Economic growth in Latvia is affected by R&D costs, gross fixed capital formation, and, as in Lithuania, the number of R&D researchers, workforce, and an increase in the number of patents. Economic growth in Estonia is determined by workforce, gross fixed capital formation, R&D costs, and patent applications. The results of the research were statistically processed with the Eviews programme batch. The conclusions and recommendations summarise the main concepts of literature analysis as well as the results of the performed research. The author maintains that the research results could provide useful guidelines for policymakers for developing innovation policies and determining measures which promote innovation development in the countries. |
