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Linking R&D Expenditure to Labour Market and Economic Performance: Empirical Evidence from the European Union

Year: 2025

Type: article

Abstract: This article examines how research-and-development (R&D) expenditure—as a share of GDP—both in total and disaggregated by sector (business enterprise and government)—shapes key socioeconomic outcomes in the EU-27. Drawing on Eurostat panel data for 2013–2022, we estimate fixed- and random-effects models with sector-specific lags. Business R&D expenditure is associated with lower female and male unemployment and faster GDP growth. Government R&D expenditure, by contrast, widens the gender pay gap and dampens GDP per capita after two years, although it attracts foreign direct investment in the short and medium term. The diminishing impact of R&D over time underscores the need for policies that sustain innovation benefits.

Source: Sustainability

DOI: 10.3390/su17146595

Authors: Wojciech Chmielewski, Marta Postuła, Krzysztof Gawkowski

Institutions: University of Warsaw, Uczelnia Techniczno-Handlowa im. Heleny Chodkowskiej

Language: English

Topic: Innovation Policy and R&D

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Gender equality, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $2,896