Human Resources in Europe. Estimation, Clusterization, Machine Learning and Prediction

Abstract

We estimate the relationships between innovation and human resources in Europe using the European Innovation Scoreboard of the European Commission for 36 countries for the period 2010-2019. We perform Panel Data with Fixed Effects, Random Effects, Pooled OLS, Dynamic Panel and WLS. We found that Human resources is positively associated to “Basic-school entrepreneurial education and training”, “Employment MHT manufacturing KIS services”, “Employment share Manufacturing (SD)”, “Lifelong learning”, “New doctorate graduates”, “R&D expenditure business sector”, “R&D expenditure public sector”, “Tertiary education”. Our results also show that “Human Resources” is negatively associated to “Government procurement of advanced technology products”, “Medium and high-tech product exports”, “SMEs innovating in-house”, “Venture capital”. In adjunct we perform a clusterization with k-Means algorithm and we find the presence of three clusters. Clusterization shows the presence of Central and Northern European countries that has higher levels of Human Resources, while Southern and Eastern Europe has very low degree of Human Resources. Finally, we use seven machine learning algorithms to predict the value of Human Resources in Europe Countries using data in the period 2014-2021 and we show that the linear regression algorithm performs at the highest level.

The Export of Medium and High-Tech Products Manufactured in Europe

“…It follows that the overall increase in the value of human capital at country level is not positively associated with the value of exports of medium and high technology products. That is, for when individually the presence of doctorates, tertiary education and lifelong learning is a positive fact for the export of high-tech products, the sum of the three variables is negatively associated with the export of hightech products [36]. • Government procurement of advanced technology products: is an indicator that considers the demand for technologically advanced products that is required by the state.…”

The Impact of New Doctorate Graduates on Innovation Systems in Europe

“…And in this process a very important role is played by research doctorates who can create increasingly technologically advanced products and services [14]. • Government Procurement of Advanced Technology Products: is a variable that considers the capacity of public procurement to promote technological innovation through the demand for goods and services.…”

The Export of Medium and High-Tech Products Manufactured in Europe

“…It follows that the overall increase in the value of human capital at country level is not positively associated with the value of exports of medium and high technology products. That is, for when individually the presence of doctorates, tertiary education and lifelong learning is a positive fact for the export of high-tech products, the sum of the three variables is negatively associated with the export of high-tech products [36]. • Government procurement of advanced technology products: is an indicator that considers the demand for technologically advanced products that is required by the state.…”