Abstract:

Innovation can be defined as a complex and ongoing process for the discovery, development, learning and implementation of technologies, as well as new ideas, commercial and industrial methods. Most of the processes and techniques from innovation efforts are cumulative and interdependent. The ability of a country to develop these efforts depends on the quality of education, the availability of infrastructures to support research and functioning of the markets. Innovation plays an important role in economic growth and welfare. In the study, data from 36 OECD countries covering the period 2010-2017 were used to investigate the impact of welfare on innovation. While the dependent variable was the number of patents in the pooled regression model established; independent variables are labour productivity, R&D spending and social spending. It was found that R&D spending and social spending positively affect the number of patents. Increasing welfare will contribute to the country's innovation potential and will support growth.