Could Economic Crises Change Economic Policy Uncertainty Impact on Economic Growth and Innovation?

Abstract

Abstract-Innovation is a central driver of economic growth and development. It is the key that enables firms to successfully compete in the global marketplace, and the process by which solutions are found to social and economic challenges. Every country (firm) should be interested in investment in innovation. Nevertheless this area was affected too by economic crises (recession) significantly. Another important factor which impact innovation progress is stably, continual economic policy without repeated and strong fluctuations. This policy leads to higher investment rate and economic growth. How changed crisis the perception of predictability of economic policy? The aim of this paper is to find out (on the example of five largest European economies), how changed the perception of economic policy before crises and over the period of crises and its impact on investment, innovation and economic growth.