The role of investments in education and research and development as catalysts for innovative development
DOI:
https://doi.org/10.31558/2307-2318.2025.1.7Keywords:
innovative development, economic growth, digitalization, innovations, strategy, post-war recovery, managementAbstract
The article examines the key role of investments in education and research and development (R&D) as fundamental catalysts for innovation-driven development and economic growth. The theoretical analysis is based on the classic works of J. Schumpeter, P. Romer, and R. Lucas, which emphasize the importance of human capital and technological progress in stimulating economic development. Through a detailed study of South Korea’s case, this research demonstrates how strategic and sustained investments in education and R&D have led to a profound transformation of the country’s economy, elevating it to the level of a world leader in high-tech industries. The article analyzes South Korea’s policies, in particular the modernization of curricula—especially in STEM disciplines, significant public funding of scientific research, and the creation of favorable conditions for innovation that encourage cooperation between academia and industry. A correlation and regression analysis was conducted, confirming a strong positive relationship between R&D expenditures and per capita GDP growth. The findings indicate that increased investment in R&D significantly contributes to economic development, confirming the effectiveness of South Korea’s investment strategy. In conclusion, the article provides adapted recommendations for Ukraine, highlighting the potential benefits of leveraging Korean experience in the context of post-war recovery. Among the recommendations are increasing public investment in education and R&D, fostering innovation through supportive policies, and strengthening international cooperation to integrate global best practices. Prioritizing investments in education, science, and innovation will enable Ukraine to stimulate economic revival, enhance its global competitiveness, and lay a sustainable foundation for long-term growth.
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