Innovation and productivity: the case of Nordic countries

• Published in: RUDN Journal of Economics
• Main Authors: Svetlana A. Balashova, Anastasia A. Abramova
• Format: Article in Journal/Newspaper
• Language: English; Russian
• Published: Peoples’ Friendship University of Russia (RUDN University) 2021
• Subjects: total factor productivity; r&d expenditures; nordic countries; innovative development; innovative activity; national innovation system; Economic growth; development; planning; HD72-88; Economics as a science; HB71-74; Norway; Iceland
• Online Access: https://doi.org/10.22363/2313-2329-2021-29-1-88-98; https://doaj.org/article/6d8284c552e943e0a1369a9626f315b8

Denmark, Finland, Iceland, Norway, and Sweden form a group of the Nordic countries, considered welfare states and the global leaders in innovative development. The link between the growth rate of total factor productivity and innovative development, controlling such factors as trade openness and prices volatility in commodity markets, is examined. The econometric analysis results show that the relationship between the level of innovative development and the rate of productivity growth is more robust for the Nordic countries than for the EU countries on average. Features of the national innovation systems and financing of RD in the Nordic countries and factors contributing to the impact of innovation activity on productivity are highlighted.