Assessing the impact of research activities in higher education institutions on high-technology sector development: example of OECD countries

Abstract

A high level of innovation activity is a key to ensuring the competitiveness of the industrial sector in the context of Industry 4.0. The aim of the study is to determine the impact of research and scientific activity of higher education institutions (HEIs) on the development of high-technology sectors, namely represented as high-technology patent population in the context of OECD countries. Furthermore, the research identifies and analyzes the key determinants of patent population in OECD countries, considering the impact of scientific activities, research and development (R&D) investments, human capital, and institutional environment in the development of high-technology economy sectors. The study is aimed at deepening the understanding of the formation of patent potential as the indicator of innovative development and long-term economic growth. The methodological foundation of the study lies in endogenous growth and innovation economy theories. The study uses econometric panel data analysis methods, namely the generalized method of moments (GMM), which allows considering for endogeneity of the variables, time trend of the patent activity and structural differences between the countries. The empirical foundation consists of OECD countries statistical data and WIPO database. The following factors influencing patent production were identified: statistically significant positive influence of government and private sector R&D investment; limited statistically insignificant influence of higher education sector investment; negative effect of time trend and researcher density. Non-linear features of individual factors were identified, namely the possible existence of threshold effects of investments and researcher population. High-technology patents are confirmed to be an important factor in development of innovative sectors and the international competitiveness of economies. The study results suggest the need for a comprehensive government policy aimed at supporting research activities, human capital development and improving institutional environment for innovative activities. The practical value of the study lies in the ability to use obtained findings to justify strategies for innovative development and stimulating patent activity in OECD countries.