Основан в 1907 году
в России и за рубежом
The article attempts to evaluate the sources of the EU competitiveness. This paper is organized as follows: there is a short literature review in the first part (how GDP growth is connected with competitiveness, how competitiveness is defined and how it can be measured). Basing on those acknowledgements, the hypothesis about the contribution of two “pillars” of competitiveness – the innovations and general economic conditions was state. In the third part, an econometric test of this hypothesis was conducted, and finally the outcomes and limitations of this study were discussed in the conclusions.
The central hypothesis of this study is that there are two main sources of competitiveness represented by the cost competitiveness and innovation (value added) competitiveness, with the latter being more important for the EU than the former. Competitiveness was defined as an ability to attract foreign investments and therefore to contribute to the GDP growth.
Two approaches to competitiveness measurement were approved: general economic conditions approach and innovation approach. General economic conditions approach emphasizes ordinary economic variables such as price indicators, GDP growth and infrastructure. Innovation approach is trying to measure “softer” aspects of competition – science, willing to innovate and to create high value added products. Thus, the competitiveness was measured by two different ways that was aimed to avoid multicolinearity of the model.
As a result both approaches yield totally different results. In general economic conditions approach of the winner is typical for Eastern Europe with low prices and high growth prospects. Innovation approach yields much better results for western and especially northern Europe.