Smart economic development patterns in Europe: interaction with competitiveness

Abstract

Purpose This paper aims to investigate the smart economic development (SED) patterns in Europe in relation to competitiveness. Motivational focus corresponds to global events: the fourth industrial revolution, transition to a low-carbon economy, economic shocks (such as the 2008 financial crisis, Brexit or the coronavirus pandemic), which requires rethinking development policies, targeting competitiveness increase and reducing imbalances in economic development. Design/methodology/approach The analysis includes self-organising neural networks cluster analysis and correlations, comparative analysis of SED indicators structure and cumulative index estimation with World Economic Forum (WEF) global competitiveness index. The panel data set of 19 years from 2000 to 2018 for 30 European countries. Findings Overall, cross-country examination suggests that European countries of higher competitiveness illustrate higher estimates in SED. The key determinants are juridical fairness, social responsibility, competence building, intelligence and welfare employment to develop smart patterns for reaching higher competitiveness. Research limitations/implications The limitations relate to the particular sample of European countries and gathering statistical data and a methodology of the SED index calculation. In addition, the paper contains a macroeconomic environment focus on competitiveness estimation. Further research may be improved with micro and mezzo environment incorporation at a cross-country analysis level. Practical implications By linking well-known terms of competitiveness and economic development with a concept of smartness, new approaches to policymaking emerged. The methodology presented in this paper has implications for territorial cohesion policies, competitiveness and branching strategies. The combination of SED sub-indexes and WEF GCI might aid a more accurate ex ante measurement. Social implications The findings are essential for fostering a smart approach in economic development for long-term competitiveness. Originality/value This paper provides original empirical evidence about the relationship between SED and competitiveness and adds new knowledge that smartness becomes a way for building countries’ competitiveness by identified two profiles of SED patterns by development stages, namely, integrated to economic development and institutional-based which is divided to focus and balanced.

Focus on entrepreneurship and competitive advantages

“…Research on EU countries in this respect has shown that smart economic development facilitates the improvement of the productivity of land, labor and capital, thus driving competitiveness. The key determinants of competitiveness in this approach are legal environment, social responsibility, competence and knowledge building, and social security of employees [Bruneckiene, Rapsikevicius, Lukauskas, Zykiene, Jucevicius, 2021]. Similar analyses were carried out for Central and Eastern European countries [Dagiliene, Bruneckiene, Jucevičius, Lukauskas, 2020].…”

Znaczenie przedsiębiorczości w kształtowaniu przewag konkurencyjnych

“…Badania przeprowadzone pod tym kątem wśród krajów Unii Europejskiej (UE) pokazały, że inteligentny rozwój (smart economic development) umożliwia poprawę produktywności ziemi, pracy i kapitału, wpływając tym samym na konkurencyjność. Kluczowymi determinantami konkurencyjności są w tym przypadku: porządek prawny, odpowiedzialność społeczna, budowanie kompetencji i tworzenie wiedzy oraz zabezpieczenie socjalne zatrudnionych [Bruneckiene, Rapsikevicius, Lukauskas, Zykiene, Jucevicius, 2021]. Podobne analizy przeprowadzono dla krajów Europy Środkowo-Wschodniej [Dagiliene, Bruneckiene, Jucevičius, Lukauskas, 2020].…”

Comprehensive Assessment of Enterprise Digital Competitiveness

“…Scientists operating in the fi eld of economics assert that competitiveness is one of the substantial elements infl uencing the level of a country's economic development (Bruneckienė et al, 2021;Muradov et al, 2019;Mynkin, 2017). Moreover, competitiveness diminishes the size of the shadow economy (Poufi nas et al, 2021), which, in turn, could infl uence overall economic growth.…”