The Innovation Factor: An Econometric Model of Productivity European Regions

Abstract

This paper emphasizes the importance of the innovation input in the productive process, as a way to maximize the capacity and effectiveness of the labour factor and its productivity. This work describes some of the factors that are enunciated and that condition the existence of good levels of productivity of the factor work, enhancing with special attention the narrow relation between innovation and productivity. In this direction we proceed to the specification of an econometrical model, inspired by the Solow Growth Model, with the clear objective of placing in evidence the importance of the technological progress and the growth of productivity in 108 NUTS II regions of the European Union, using for such the expense in Inquiry and Development, as a reference measure.