CONNECTING INNOVATION AND ECONOMIC PROSPERITY: THE IMPACT OF R&D EXPENDITURES ON ECONOMIC GROWTH

The role of research and development (R&D) as a main foundation of innovation, productivity improvement, and a key element for national competitive advantage in the global economy is well established. This study aims to examine the relationship between R&D investment and economic growth through empirical analysis using panel regression techniques. Our results reveal that human capital specialised in science and technology significantly contributes to economic growth. Overall, innovation and a well-educated workforce are helpful in achieving sustainable development. Our model provides a statistically valid framework for analysing economic growth, enabling the formulation of sound policy recommendations while accounting for potential biases commonly found in panel data analysis.