Analysing innovation performance in the context of economic development

Abstract

The purpose of this study was to analyse the key characteristics of innovation in selected European countries and, based on this analysis, to determine the correlation between investment growth in innovative solutions and the dynamics of national economic development. The study examined such indicators of innovation processes as the volume of human capital, the number of scientific publications, the degree of digitalisation, public and private investment in innovation, intellectual assets, and the export of knowledge-intensive products across several European countries. A regression analysis was conducted to identify patterns in the development of national economies. The study covered the dynamics of innovation activity in Europe between 2016 and 2023, which allowed for identifying key development vectors in specific countries and determining the dependence of economic growth on financial investments in new technologies and the speed of their implementation. The results showed that Belgium and Denmark exhibited the highest levels of innovation activity, significantly exceeding the EU average, particularly in digitalisation, human capital development, and research attractiveness. Germany and France demonstrated stable but moderate growth in innovation indicators, while countries such as Poland and the Czech Republic showed positive but slower trends. Conversely, Bulgaria and Turkey ranked among the least innovative economies in the region. A regression analysis of the relationship between GDP and innovation index revealed that the correlation was not strictly linear. Some smaller economies with robust innovation policies outperformed larger ones in terms of innovation development. The findings highlighted the necessity of increasing both public and private investment in R&D, optimising funding mechanisms, and fostering stronger publicprivate partnerships to support innovation. The practical significance of the research lay in identifying predictable trends in innovation activity, highlighting the most promising areas for future investment, and pinpointing key applications for emerging technologies.