Does innovation promote economic growth? Evidence from European countries

Journal of Innovation and Entrepreneurship

A Systems View Across Time and Space

Table 11 Summary of Granger causality test

Countries	Nature of Granger causality between
	Case 1	Case 2	Case 3	Case 4	Case 5	Case 6
	PAR and GDP	PAN and GDP	RDE and GDP	RRD and GDP	HTE and GDP	STJ and GDP
Austria	FBH	SLH	DFH	SLH	NEH	DFH
Belgium	SLH	SLH	SLH	SLH	SLH	DFH
Czech Republic	DFH	SLH	DFH	SLH	NEH	NEH
Denmark	DFH	FBH	SLH	DFH	NEH	DFH
Finland	SLH	DFH	SLH	DFH	FBH	SLH
France	SLH	SLH	SLH	SLH	SLH	SLH
Germany	SLH	DFH	SLH	SLH	FBH	DFH
Greece	SLH	DFH	–	–	NEH	FBH
Hungary	DFH	FBH	SLH	SLH	DFH	SLH
Ireland	DFH	FBH	DFH	DFH	SLH	DFH
Italy	SLH	NEH	SLH	SLH	DFH	DFH
Netherlands	SLH	SLH	DFH	DFH	SLH	FBH
Norway	DFH	DFH	SLH	DFH	DFH	FBH
Poland	FBH	NEH	SLH	DFH	DFH	FBH
Portugal	SLH	FBH	SLH	SLH	DFH	FBH
Romania	SLH	SLH	DFH	FBH	DFH	SLH
Spain	FBH	SLH	DFH	DFH	DFH	SLH
Sweden	FBH	SLH	SLH	NEH	SLH	FBH
United Kingdom	SLH	FBH	SLH	SLH	SLH	DFH
European panel	FBH	DFH	FBH	FBH	FBH	DFH

Case 1: cointegration between PAR and GDP; case 2: cointegration between PAN and GDP; case 3: cointegration between RDE and GDP; case 4: cointegration between RRD and GDP; case 5: cointegration between HTE and GDP; case 6: cointegration between STJ and GDP. PAR is number of patents by residents, PAN is number of patents by non-residents, RDE is research and development expenditure, RRD is researchers in research and development activities, HTE is high-technology exports, STJ is scientific and technical journal articles, and GDP is per capita economic growth. SLH indicates the unidirectional causality from innovation to economic growth, DFH indicates the unidirectional causality from economic growth to innovation, FBH indicates the bidirectional causality between innovation and economic growth, and NEH indicates no causal flow between innovation and economic growth. Results are derived on the basis of Tables 9 and 10 results