The dataset was sourced from Kaggle.
It comprises of R&D expenditure as a GDP % by European countries from 2008-2019. The purpose of the analysis is to evaluate respective goverments' fiscal policy using R&D as a form of Goverment spending. Goverments spend to expand economies and reduce the spending to do the reverse. R&D budgets are used to improve quality and quantity of factors of production, a long term strategy. Say, Brookside Kenya receives several million Kshs to come up with longer shelf life milk technologies at a cost efficient price so that the milk can be supplied to far flung areas like Wajir.
Sucessfull, Brookside may license this technology to other companies increasing the supply of longer shelf-life milk all over the country which will be creating jobs for skilled labor, adoption of dairy farming by more farmers due to the new market, feed manufacturers will have a bigger market to serve thus ramp up their capacity, logistics and retailers. The surplus will be exported to neighbours Uganda, Tanzania which will narrow down our trade deficit and strengthen our shilling thus preserve our wealth.
All these trickled down from a goverment funding! It's a crucial tool and the analysis asseses its use in Europe. Various sectors receive the funds in the dataset including: BES which represents Business Sector, GOV represents Goverment sector, HES represents Higher Education Sector and PNP represents Private Non-Profit Sector.
Business Sector evidently receives the highest allocation given it's quick return on investment trailed by Higher Education which is more long term an unpopular thing with most politicians. The total average expenditure on R&D has increased across Europe signifying need to expand the economies and gain competitive advantage. Business Sector's share has also increased sigificantly denoting the powerful impacts derived from it which include:
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Reduced unemployment levels
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Expanded economy
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Stable inflation as new jobs are consumed
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Increased investor confidence
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Increased exports and competitive advantage
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Upskilling of the labor force to match the new jobs.
You will note share to Private Non-Profit Sector reduce as capitalism wins the day. The sector contributes little to the growth of the economy, at least to the naked eye. Explore the file to gain insights from European countries as of 2019.