National intellectual capital influence on economic growth in the European Union countries

Main Article Content

Irena Mačerinskienė
Rasa Aleknavičiūtė

Abstract

Research background: Importance of intangible resources for country’s economic growth is widely recognized. However, empirical evidence of this influence is hard to show due to measurement limitations of intangible resources. Majority of empirical studies concentrates on the analysis of a specific type of intangible resource’s influence on economic growth. National intellectual capital concept provides background for an integrated assessment of the country's intangible resources. This new approach enables the estimation of intangible resources’ influence to economic growth in a more complex way.


Purpose of the article: a) To examine various scientific approaches of the national intellectual capital and its impact on the economic growth; b) to offer a measurement model of the national intellectual capital influence on economic growth; c) to evaluate the specific European Union countries’ intellectual capital’s effect on their economic growth.


Methods: Econometric analysis; refined factor value computation method using the stand-ardized regression coefficients; the SAW method; expert evaluation, cluster analysis; corre-lation and regression analyses.


Findings & Value added: A review of the economic growth theories showed that structural components of intellectual capital (human capital, structural capital, social capital, relational capital) in economic growth theories are analyzed as key determinants of economic growth. Our proposed research methodology consists time lag between variables and this let us evaluate casual relation. Empirical analysis of 25 European Union countries’ intellectual capital’s effect on their economic growth rate revealed that national intellectual capital and the countries’ level of economic development have statistically significant impact on economic growth rate. The analysis of intellectual capital components’ influence on economic growth rate of 25 European Union countries showed that only human capital and the level of economic development have statistically significant influence. A more comprehensive human capital’s influence on economic growth analysis revealed that 63.1 percent of the long-term economic growth rate in 25 European Union countries can be explained by differences in their economic development level and differences in educational achievement factor values. Moreover, analysis of national intellectual capital effect on economic growth in separate clusters allowed to identify influence differences in each group of countries.

Article Details

How to Cite
Mačerinskienė, I., & Aleknavičiūtė, R. (2017). National intellectual capital influence on economic growth in the European Union countries. Equilibrium. Quarterly Journal of Economics and Economic Policy, 12(4), 573-592. https://doi.org/10.24136/eq.v12i4.30
Section
Economic growth

References

Abdouli, M., & Hammami, S. (2017). Investigating the causality links between environmental quality, foreign direct investment and economic growth in MENA countries. International Business Review, 26(2). doi: 10.1016/j.ibusrev. 2016.07.004.
Agénor, P.-R., & Dinh, H. T. (2015). Social capital, product imitation and growth with learning externalities. Journal of Development Economics, 114. doi: 10.1016/j.jdeveco.2014.11.008.
Andriessen, D., & Stam, C. D. (2005). Intellectual capital of the European Union. In McOaster world congress on the management of intellectual capital and in-novation. Retrieved from http://www.weightlesswealth.com/downloads/Pa per%20Anriessen%20and%20Stam%207th%20World%20Congress%20IC.pdf.
Becker, G. S. (1975). Front matter, human capital: a theoretical and empirical analysis, with special reference to education. National Bureau of Economic Research, 22.
Beskese, A., Bozbura, F. T., & Aldemir, G. (2014). A model proposal to measure national intellectual capital. In 18 th international research/expert conference ”Trends in the development of machinery and associated technology” TMT 2014, Budapest, Hungary. Retrieved from http://tmt.unze.ba/zbornik/ TMT2014/TMT2014_050.pdf.
Bontis, N. (2004). National intellectual capital index: a united nations initiative for the Arab region. Journal of Intellectual Capital, 5(1). doi: 10.1108/1469193 0410512905.
Dudzevičiūtė, G., & Čekanauskas, J. (2014). The research of the causal relation-ship between unemployment and emigration in Lithuania. Business: Theory and Practice, 15(4). doi: 10.3846/btp.2014.516.
Erumban, A. A., & Das, D. K. (2016). Information and communication technology and economic growth in India. Telecommunications Policy, 40(5). doi: 10.1016/j.telpol.2015.08.006.
Fukuyama, F. (1995). Social capital and the global economy: a redrawn map of the world. Foreign Affairs, 5.
Grootaert, C., Van Bastelaer, T., & Putnam, R. D. (Eds.) (2008). The role of social capital in development: an empirical assessment. Cambridge: Cambridge Uni-versity Press.
Hanushek, E. A., & Kimko, D. D. (2000). Schooling, labor-force quality, and the growth of nations. American Economic Review, 90(5).
Isaksson, A. (2007). Determinants of total factor productivity: a literature review. Research and Statistics Branch, UNIDO. Retrieved from http://www.rrojasdatabank.info/87573_determinants_of_total_factor_productivity.pdf.
Jianbin, C., Yanli, G., & Kaibo, X. (2014). Value added from knowledge collabo-ration: convergence of intellectual capital and social capital. International Journal of U- & E-Service, Science & Technology, 7(2).
Jones, C. I. (1995). R&D based models of economic growth. Journal of Political Economy, 103.
Kapyla, J., Kujansivu, P., & Lönnqvist, A. (2012). National intellectual capital performance: a strategic approach. Journal of Intellectual Capital, 13(3). doi: 10.1108/14691931211248909.
Keller, W. (2009). International trade, foreign direct investment, and technology spillovers. NBER Working Paper, 1544.
Lazuka, V. (2012). National intellectual capital: concept and measurement. Lund University. School of Economics and Management, 76.
Lin, C. Y.-Y., & Edvinsson, L. (2011). National intellectual capital a comparison of 40 countries. New York: Springer.
López Ruiz, V. R., Alfaro Navarro, J. L., & Nevado Peña, D. (2011). Economic development and intellectual capital an international study. Desarrollo Eco-nomico Y Capital Intellectual: Un Estudio Internacional, 29.
Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22.
Mačerinskas, J., Mačerinskienė, I., & Aleknavičiūtė, R. (2016). Change of national intellectual capital in EU countries. Montenegrin Journal of Economics, 12(4).
Malhotra, Y. (2000). Knowledge assets in the global economy: assessment of na-tional intellectual capital. Journal of Global Information Management, 8(3).
Malhotra, Y. (2003). Measuring knowledge assets of a nation: knowledge systems for development. United Nations Advisory Meeting of the Department of Eco-nomic and Social Affairs Division for Public Administration and Development Management. Retrieved from http://km.brint.com/KnowledgeManagement MeasurementResearch.pdf.
Michalczuk, G., & Fiedorczuk, J. (2016). National intellectual capital (Nic) - the conceptualization of approach. Research Papers of Wrocław University of Economics, 449. doi: 10.15611/pn.2016.449.36.
OECD (2003). ICT and economic growth. Paris: Organisation for Economic Co-operation and Development. Retrieved from http://www.oecd-ilibrary.org/content/book/9789264101296-en.
Olson, M. (1982). The rise and decline of nations: economic growth, stagflation, and social rigidities. Yale University Press.
Paldam, M., & Svendsen, G. T. (2000). Missing social capital and the transition in Eastern Europe. Department of Economics, Faculty of Business Administra-tion, Aarhus School of Business. Retrieved from http://www.hha.dk/nat/wper/00-5_gts.pdf.
Rodrik, D. (2000). Institutions for high-quality growth: what they are and how to acquire them. Studies in Comparative International Development, 35(3).
Romer, P. (1990). Endogenous technological change. Journal of Political Econo-my, 98(5).
Salahuddin, M., & Gow, J. (2016). The effects of Internet usage, financial devel-opment and trade openness on economic growth in South Africa: a time series analysis. Telematics and Informatics, 33(4). doi: 10.1016/j.tele.2015.11.006.
Salonius, H., & Lönnqvist, A. (2012). Exploring the policy relevance of national intellectual capital information. Journal of Intellectual Capital, 13(3). doi: 10.1108/14691931211248891.
Savulescu, C. (2015). Dynamics of ICT development in the EU. Procedia Economics and Finance, 23. doi: 10.1016/S2212-5671(15)00552-3.
Schultz, T. W. (1963). Economic value of education. New York: Columbia Univ Press.
Scrivens, K., & Smith, C. (2013). Four interpretations of social capital. OECD Working Paper, 55. Retrieved from http://www.oecd-ilibrary.org/econo mics/four-interpretations-of-social-capital_5jzbcx010wmt-en.
Serenko, A., & Bontis, N. (2013). Investigating the current state and impact of the intellectual capital academic discipline. Journal of Intellectual Capital, 14(4). doi: 10.1108/JIC-11-2012-0099.
Stahle, P. (2008). National intellectual capital as an economic driver: perspectives on identification and measurement. Inspired by Knowledge in Organizations. Retrieved from http://www.researchgate.net/publication/228467107_National_ Intellectual_Capital_as_an_Economic_DriverPerspectives_on_Identification_ and_Measurement/file/d912f508a21e000d5f.pdf.
Ståhle, P., Ståhle, S., & Lin, C. Y. Y. (2015). Intangibles and national economic wealth – a new perspective on how they are linked. Journal of Intellectual Capital, 16(1). doi: 10.1108/JIC-02-2014-0017.
Stam, C., & Andriessen, D. (2009). Intellectual capital of the European Union 2008: measuring the Lisbon Strategy for growth and jobs. Electronic Journal of Knowledge Management, 7(4).
Stewart, T. A. (1997). Intellectual capital: the new wealth of organizations. Dou-bleday / Currency.
Tabellini, G. (2010). Culture and institutions: economic development in the regions of Europe. Journal of the European Economic Association, 8(4). doi: 10.2139/ssrn.1031915.
Užienė, L. (2014). Measurement of national intellectual capital: the benchmarking of the Baltic countries in the context of Europe. In Proceedings of the Europe-an Conference on Intellectual Capital.
Vu, K. M. (2011). ICT as a source of economic growth in the information age: empirical evidence from the 1996–2005 period. Telecommunications Policy, 35(4). doi: 10.1016/j.telpol.2011.02.008.
Weziak, D. (2007). Measurement of national intellectual capital – application to EU countries. IRISS Working Paper Series, 2007–13. Retrieved from http://econpapers.repec.org/paper/irsiriswp/2007-13.htm.
Woolcock, M., & Narayan, D. (2000). Social capital: implications for development theory, research, and policy. World Bank Research Observer, 15(2). doi: 10.1093/wbro/15.2.225.