Research and development (R&D) activities and innovation play a crucial role in sustainable economic growth, strengthening competitiveness and social challenges. The European Union (EU) promotes increased investment in knowledge and innovation to reduce the gap with the world's leading economies. Innovation processes are directly linked to economic productivity, job creation and the transformation of traditional sectors into digitally and environmentally oriented industries.
The purpose of this master's thesis was to analyse and compare trends in R&D and the innovation performance of EU member states. Using descriptive statistical analysis, trend analysis and statistical methods, data from Eurostat and the European Innovation Scoreboard for the period 2003–2023 were examined. The trends were analysed according to EU membership status, regions and the structure of funding by sector (business enterprise, government, higher education and nonprofit). Innovation performance was assessed through the movement of innovation indexes between 2017 and 2024, with a particular focus on Slovenia.
The results show that R&D expenditures in the EU have increased over the past two decades, but significant differences between regions and funding structures remain. The role of the private sector has strengthened. The analysis confirms a positive correlation between the level of investment and innovation performance. However, the amount of expenditure alone is not sufficient for success – investment efficiency, policy quality and stakeholder cooperation are also key. With around 2 % of GDP dedicated to R&D in 2023, Slovenia remains a moderate innovator. The research confirms that stable and strategic investments in R&D and innovation form the foundation for the EU's digital and green transition and for strengthening competitiveness. The study highlights developmental disparities and provides a basis for the future innovation policies in Slovenia and the EU.
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