Innovation and the Effect of Research and Development (R&D) Expenditure on Growth in Some Developing and Developed Countries

Abstract

The concept of globalization accelerates the transfer of the trade from the local point to the international dimension. In today's information age, besides getting the information, it is important to use the information effectively and create value. This context increases the value of the innovation that means renewal of science and technology that provide economical and social benefits. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy. Hence innovation is the most important factor for countries that guarantees employment growth, sustainable growth, social welfare and the quality of life. International competition and sustainable growth have increased the importance of Research and Development (R&D) expenditure. So for this, a good R&D level is required for whole countries. The increase of the R&D level forms a basis for the innovation to move. The main scope of this study is to investigate the relationship between R&D and economic growth. In this study, firstly literature review is analyzed about the innovation and afterward is focused on R&D expenditures and economic growth corresponding with innovation and their relative influence on some developing and developed countries in the world. (C) 2015 The Authors. Published by Elsevier Ltd.