Therefore, it is not surprising that R&D expenditures as % of GDP are a significant determinant and have a
positive effect on economic growth. The R&D expenditures may reflect not only the demand of local businesses, but
also the degree to which the know-how and the new technology are embodied in the economic activities. Investing
in R&D brings not only economic benefits, by generating higher productivity and competitiveness, but also has a
social impact, by engaging human capital in innovating activities that over time generate added value.