The Synergy Between Digitalization and the Level of Research and Business Development Allocations at EU Level

Abstract In an era in which technological progress is creating new economic perspectives, exploring interdependencies and finding the dimension of the connection between ICT skills and the R&D dimension are of particular interest. It is somewhat universally accepted that ICT development actively helps the growth of R&D potential in a general sense and that innovation stimulates new developments in the ICT sphere. This study suggests a statistical measuring of this connection and it identifies a quantifiable corellation between R&D allocations and the increase of computer and Internet use at companies’ level. The econometric analysis of the available data at European countries’ level over the 2012-2021 period was performed using the panel method, which allowed the estimation of a regression relationship between the chosen indicators. The identified connection is one of direct proportionality between increased R&D allocations and increased digitalization and ICT skills in businesses.