Time-series and regression analysis reveals trailing business research spending in the European Union relative to global peers, highlighting structural innovation weaknesses.
This study examines the development of business enterprise expenditure on research and development (BERD) in the European Union between 2014 and 2024 and compares it with trends in selected global economies, namely the United States, Japan, China, and South Korea.The research employs descriptive time-series analysis and ordinary least squares (OLS) regression in a log-log specification to identify long-term trends, structural differences, and factors influencing business R&D investment.In addition, the study assesses environmental protection expenditure in selected European countries as a complementary indicator of sustainable competitiveness.The results show that although BERD in the European Union has increased steadily in absolute terms, the EU continues to lag behind all analysed economies when measured relative to economic performance.The regression analysis confirms a statistically significant positive relationship between economic size and BERD, while the estimated elasticity indicates that business R&D expenditure grows at a slower rate than the economy itself.Environmental protection expenditure also demonstrates an upward trend across the analysed countries, although the pace of growth differs considerably between individual states.The findings point to a persistent structural weakness within the European innovation system and highlight the need for more effective policy measures aimed at stimulating business investment in research and development.At the same time, the results emphasise the importance of supporting environmental investments as part of a broader strategy for strengthening the long-term competitiveness and sustainability of the European economy.
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Cejpek et al. (2026) studied this question.
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