THE IMPACT OF CREATIVITY AS A FACTOR OF ECONOMIC DEVELOPMENT ON GDP GROWTH IN EU COUNTRIES
This study examines the critical role of creativity in economic development and its significant impact on GDP growth within the European Union. Using Principal Component Analysis (PCA), the study evaluates and quantifies the impact of specific indicators of creative development on economic performa...
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Izdevnieciba “Baltija Publishing”
2025-03-01
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| Series: | Baltic Journal of Economic Studies |
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| Online Access: | http://baltijapublishing.lv/index.php/issue/article/view/2724 |
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| author | Robert Leščinskij Olga Iurasova Jolita Šliogerienė |
| author_facet | Robert Leščinskij Olga Iurasova Jolita Šliogerienė |
| author_sort | Robert Leščinskij |
| collection | DOAJ |
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This study examines the critical role of creativity in economic development and its significant impact on GDP growth within the European Union. Using Principal Component Analysis (PCA), the study evaluates and quantifies the impact of specific indicators of creative development on economic performance. Based on data collected from 28 EU countries and Switzerland, the analysis shows that regions characterised by a higher concentration of creative activity and innovation infrastructure tend to have higher GDP growth. The methodology involves a careful selection, standardisation and evaluation of key variables representing creative development, ensuring consistency in comparisons across countries. PCA allows complex datasets to be distilled into three principal components that together account for 78.33% of the total variance, providing a comprehensive view of the multidimensional nature of creative economic activity. The primary aim of this research is to explore how creativity can act as a driver of sustainable economic growth and to provide practical recommendations for policy makers seeking to maximise this potential. The findings highlight the important role of human capital, cultural vibrancy and the creative industries in fostering regional economic resilience and innovation. Among the factors examined, the number of R&D personnel per million inhabitants emerges as a critical determinant, with a strong positive correlation with GDP per capita. In addition, the share of employees in innovative firms and the presence of design-oriented firms were found to be key drivers of growth, highlighting the importance of fostering creativity and innovation across different sectors of the economy. The study concludes that supporting creative industries, increasing R&D investment and fostering an environment conducive to innovation are essential strategies for increasing GDP growth, even in resource-constrained regions. These findings highlight the need for strong institutional support and targeted policies to develop creative potential and stimulate economic progress. This research advances the understanding of the role of creativity in economic development by providing a structured framework for future analysis. The authors exhort policymakers to employ these insights to devise initiatives that harness creativity as a means to attain long-term economic resilience, innovation, and regional competitiveness in an evolving global economy. The present research prompts future investigation, with a particular focus on the direct impact of creative industries in specific sectors, such as technology or cultural industries, on economic growth and innovation.
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| format | Article |
| id | doaj-art-2189ed77b9f34b279501eeb4be5833c5 |
| institution | Kabale University |
| issn | 2256-0742 2256-0963 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Izdevnieciba “Baltija Publishing” |
| record_format | Article |
| series | Baltic Journal of Economic Studies |
| spelling | doaj-art-2189ed77b9f34b279501eeb4be5833c52025-08-20T03:40:57ZengIzdevnieciba “Baltija Publishing”Baltic Journal of Economic Studies2256-07422256-09632025-03-0111110.30525/2256-0742/2025-11-1-135-146THE IMPACT OF CREATIVITY AS A FACTOR OF ECONOMIC DEVELOPMENT ON GDP GROWTH IN EU COUNTRIESRobert Leščinskij0Olga Iurasova1Jolita Šliogerienė2Vilnius Gediminas Technical University, Lithuania (corresponding author)Vilnius Gediminas Technical University, LithuaniaVilnius Gediminas Technical University, Lithuania This study examines the critical role of creativity in economic development and its significant impact on GDP growth within the European Union. Using Principal Component Analysis (PCA), the study evaluates and quantifies the impact of specific indicators of creative development on economic performance. Based on data collected from 28 EU countries and Switzerland, the analysis shows that regions characterised by a higher concentration of creative activity and innovation infrastructure tend to have higher GDP growth. The methodology involves a careful selection, standardisation and evaluation of key variables representing creative development, ensuring consistency in comparisons across countries. PCA allows complex datasets to be distilled into three principal components that together account for 78.33% of the total variance, providing a comprehensive view of the multidimensional nature of creative economic activity. The primary aim of this research is to explore how creativity can act as a driver of sustainable economic growth and to provide practical recommendations for policy makers seeking to maximise this potential. The findings highlight the important role of human capital, cultural vibrancy and the creative industries in fostering regional economic resilience and innovation. Among the factors examined, the number of R&D personnel per million inhabitants emerges as a critical determinant, with a strong positive correlation with GDP per capita. In addition, the share of employees in innovative firms and the presence of design-oriented firms were found to be key drivers of growth, highlighting the importance of fostering creativity and innovation across different sectors of the economy. The study concludes that supporting creative industries, increasing R&D investment and fostering an environment conducive to innovation are essential strategies for increasing GDP growth, even in resource-constrained regions. These findings highlight the need for strong institutional support and targeted policies to develop creative potential and stimulate economic progress. This research advances the understanding of the role of creativity in economic development by providing a structured framework for future analysis. The authors exhort policymakers to employ these insights to devise initiatives that harness creativity as a means to attain long-term economic resilience, innovation, and regional competitiveness in an evolving global economy. The present research prompts future investigation, with a particular focus on the direct impact of creative industries in specific sectors, such as technology or cultural industries, on economic growth and innovation. http://baltijapublishing.lv/index.php/issue/article/view/2724сreativityeconomic growthGDP growthprincipal components analysis |
| spellingShingle | Robert Leščinskij Olga Iurasova Jolita Šliogerienė THE IMPACT OF CREATIVITY AS A FACTOR OF ECONOMIC DEVELOPMENT ON GDP GROWTH IN EU COUNTRIES Baltic Journal of Economic Studies сreativity economic growth GDP growth principal components analysis |
| title | THE IMPACT OF CREATIVITY AS A FACTOR OF ECONOMIC DEVELOPMENT ON GDP GROWTH IN EU COUNTRIES |
| title_full | THE IMPACT OF CREATIVITY AS A FACTOR OF ECONOMIC DEVELOPMENT ON GDP GROWTH IN EU COUNTRIES |
| title_fullStr | THE IMPACT OF CREATIVITY AS A FACTOR OF ECONOMIC DEVELOPMENT ON GDP GROWTH IN EU COUNTRIES |
| title_full_unstemmed | THE IMPACT OF CREATIVITY AS A FACTOR OF ECONOMIC DEVELOPMENT ON GDP GROWTH IN EU COUNTRIES |
| title_short | THE IMPACT OF CREATIVITY AS A FACTOR OF ECONOMIC DEVELOPMENT ON GDP GROWTH IN EU COUNTRIES |
| title_sort | impact of creativity as a factor of economic development on gdp growth in eu countries |
| topic | сreativity economic growth GDP growth principal components analysis |
| url | http://baltijapublishing.lv/index.php/issue/article/view/2724 |
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