Scientific output in STEM disciplines and economic growth in the Visegrad Group: the role of industry

Abstract

The rapid development of science and technology underlines the importance of ongoing analysis of the relationship between scientific output and countries’ economic growth. Despite robust empirical evidence supporting a positive relationship between scientific output and economic growth, the mechanisms through which science contributes to economic growth remain insufficiently understood. Using annual time series data from 1996 to 2022 for the four Visegrad Group countries and applying the Autoregressive Distributed Lag (ARDL) approach, this study examines whether a long-term relationship exists between scientific output in the fields of science, technology, engineering and mathematics (STEM) and economic growth. In addition, the study examines the role of industry as a potential mediating mechanism linking scientific output to tangible economic benefits. The study reveals several key findings: 1) STEM disciplines exhibit a positive long-term relationship with economic growth in the Visegrad countries; 2) not all STEM disciplines demonstrate such a relationship across all four Visegrad countries; 3) in certain Visegrad countries, the relationship between scientific output in specific STEM disciplines and economic growth is either fully or partially mediated by industry. The research provides not only new insights into the intermediary role of industry in linking scientific output with economic benefits, but also practical guidance for policymakers in the Visegrad countries regarding the strategic allocation of research and development (R&D) resources. The findings underscore the need for more differentiated R&D policies that consider country-specific variations in the relationship between science and industry, aiming to ensure the optimal translation of scientific output into tangible economic benefits