The Role of Public Governance Practices for Business R&D Activity in the EU

The public sector and public governance play a crucial role in the contemporary society which takes care of social needs. Therefore, it is not surprising that good governance has often been used to explain good economic performance as well as the well-being of a society over the last decade. Howeve...

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Main Authors: Dejan Ravšelj, Sabina Hodžić
Format: Article
Language:English
Published: University of Ljubljana Press (Založba Univerze v Ljubljani) 2020-04-01
Series:Central European Public Administration Review
Subjects:
Online Access:https://journals.uni-lj.si/CEPAR/article/view/20534
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author Dejan Ravšelj
Sabina Hodžić
author_facet Dejan Ravšelj
Sabina Hodžić
author_sort Dejan Ravšelj
collection DOAJ
description The public sector and public governance play a crucial role in the contemporary society which takes care of social needs. Therefore, it is not surprising that good governance has often been used to explain good economic performance as well as the well-being of a society over the last decade. However, the business sector often represents a channel through which public governance affects economic performance, which has largely been neglected in the existing literature. In this context, not much is known about the role of public governance in promoting research and development (R&D) in the business sector in the EU. Therefore, this article aims to explain the interaction between the public and business sectors in a cross-national setting by investigating the relationship between different public governance practices and business R&D activity. The aim is to be achieved by applying a multiple regression analysis on a cross-sectional dataset of EU member countries. The empirical results show the following. First, they reveal that, in general, public administration in the EU is predominantly based on neo-Weberian state rather than New Public Management governance practices. Second, they reveal that public governance practices have important implications for business R&D activity. They show that impartiality, accountability and efficiency enhance business R&D activity in the EU, while closeness deteriorates it. The findings of the article are especially beneficial for contemporary governments and policymakers to establish appropriate public governance and policy practices in the future.
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spelling doaj-art-8c447ce6bcd34731b7a06f0cb8550af42025-01-22T11:10:53ZengUniversity of Ljubljana Press (Založba Univerze v Ljubljani)Central European Public Administration Review2591-22402591-22592020-04-0118110.17573/cepar.2020.1.06The Role of Public Governance Practices for Business R&D Activity in the EUDejan Ravšelj0https://orcid.org/0000-0003-0426-820XSabina Hodžić1https://orcid.org/0000-0002-4202-3548University of Ljubljana, Faculty of Public AdministrationUniversity of Rijeka, Faculty of Tourism and Hospitality Management The public sector and public governance play a crucial role in the contemporary society which takes care of social needs. Therefore, it is not surprising that good governance has often been used to explain good economic performance as well as the well-being of a society over the last decade. However, the business sector often represents a channel through which public governance affects economic performance, which has largely been neglected in the existing literature. In this context, not much is known about the role of public governance in promoting research and development (R&D) in the business sector in the EU. Therefore, this article aims to explain the interaction between the public and business sectors in a cross-national setting by investigating the relationship between different public governance practices and business R&D activity. The aim is to be achieved by applying a multiple regression analysis on a cross-sectional dataset of EU member countries. The empirical results show the following. First, they reveal that, in general, public administration in the EU is predominantly based on neo-Weberian state rather than New Public Management governance practices. Second, they reveal that public governance practices have important implications for business R&D activity. They show that impartiality, accountability and efficiency enhance business R&D activity in the EU, while closeness deteriorates it. The findings of the article are especially beneficial for contemporary governments and policymakers to establish appropriate public governance and policy practices in the future. https://journals.uni-lj.si/CEPAR/article/view/20534business sector, EU, neo-Weberian state, New Public Management, public governance, R&D activity
spellingShingle Dejan Ravšelj
Sabina Hodžić
The Role of Public Governance Practices for Business R&D Activity in the EU
Central European Public Administration Review
business sector, EU, neo-Weberian state, New Public Management, public governance, R&D activity
title The Role of Public Governance Practices for Business R&D Activity in the EU
title_full The Role of Public Governance Practices for Business R&D Activity in the EU
title_fullStr The Role of Public Governance Practices for Business R&D Activity in the EU
title_full_unstemmed The Role of Public Governance Practices for Business R&D Activity in the EU
title_short The Role of Public Governance Practices for Business R&D Activity in the EU
title_sort role of public governance practices for business r d activity in the eu
topic business sector, EU, neo-Weberian state, New Public Management, public governance, R&D activity
url https://journals.uni-lj.si/CEPAR/article/view/20534
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