The Role of Government in Implementation of Innovations: a Case of Lithuania

The paper deals with factors fostering implementation of innovations into Lithuanian economy. Size of enterprises and sectors of economy have been taken into account. The authors strive to estimate the role of government in the process of innovation in the economy. Hence, authors analyse factors fostering implementation of innovations, the role of state aid and perceived efficiency of state policy. At the end of the paper, the results of the survey are summarized and the conclusions are presented. Presented investigation is based on questioning results of business enterprises

If institutional performance matters: Development comparisons of Lithuania, Latvia and Estonia

Presented paper aims to estimate and compare sustainable development processes in Lithuania, Latvia and Estonia after the European Union accession. Data embracing the 2004–2008 period is being analysed. Authors take into account that different approaches to countries’ development assessment might affect their comparison results. In order to obtain a multi‐faceted view, several variants of sustainable development estimations of Lithuania, Latvia and Estonia are being performed. Each variant represents a different approach to development perception. The difference lies in emphasis, which is being put on economic and institutional aspects of development. Juxtaposition of development estimation variants is expected to reveal range, within which the resulting index fluctuates and impacts ranging of countries. Integrated complex countries’ development index is computed by using multi‐criteria method. Authors of the paper compose a system of indicators, which is being employed for research purposes. Corollaries of investigation let us judge how much Lithuanian, Latvian and Estonian ranking according to estimated development level differs due to variations of approaches applied, and how sensitive calculations are to institutional performance and current economic downturn. First Publish Online: 14 Oct 201

Impact of oil prices on stock return: evidence from G7 countries

International audienceThe aim of the study is to investigate the impact of oil prices on the stock market of G7 countries. Oil prices not only affect the economy of a country but also the country's stock market. The stock market affects the stock valuation or, to put in another way, the company's stock value. The stock value is associated with the discounted sum of predictable future cash flows and these flows may be distressed by macroeconomic variables including oil prices fluctuations. This study has researched the impact of oil prices' fluctuation on countries included G7, i.e.. For the analysis, the most recent data is collected. In this study, the real stock return has considered as a depended variable or predict variable, while oil prices, industrial production, and short-term interest rate are as independent, or predictor variables. The study is quantitative in nature. All data was collected from OECD website with the exception of oil prices, which were taken from oil intelligence report. The model, which has been used in the study is based on Arbitrage pricing theory-APT model, where financial assets are associated with macroeconomic variables. The results showed that Industrial production is positively associated with a real stock return in the case of Germany, Italy, Japan, the United Kingdom, and France, while the short-term interest rate is negatively connected with a real stock return in the case of Canada, the United Kingdom, and United States of America. Oil prices have an insignificant effect on real stock markets of all considered countries. The authors provide an economic interpretation of the obtained results

Assessment of the factors influencing competitiveness fostering the country’s sustainability

Competitiveness is a complex economic category that is closely related to the country’s sustainability. Sustainability can be achieved through the creation of added value, the fostering of quality management and the applying principles of social responsibility, and each area of the activity trying to be competitive at the same time. It follows that both competitiveness and sustainability are dependent on a number of factors at both micro and macro levels. The objective of the article is to assess the impact of factors on competitiveness and consequently on the sustainability of the country. In addition, the following tasks have been implemented: to analyze the theoretical aspects of competitiveness and sustainability; to reveal the main factors, that have an influence on the competitiveness; to assess the influence of factors on competitiveness fostering the sustainability. In this article, the following methods of analysis are used: an analysis and summary of the scientific literature, analysis of the statistical data, Granger causality test, correlation and regression analysis

If approach to innovations differs in locally and foreign owned firms: Case of Lithuania

Presented paper aims to reveal differences, if any, in innovative behavior of business firms containing foreign and not foreign capital. Innovative behavior in that case is being characterized by scale of investment into research and development, self‐financing pattern and business strategy undertaken by various firms. Juxtaposition of business firms operating in the same economy field but having different ownership origin ‐ local and containing foreign capital ‐ has been performed. Results let us identify differences in approach to innovative activity stipulated by presence of foreign capital. Tendencies obtained in Lithuania plausibly might have been verified in other less advanced European countries in order to check if a consistent pattern could be admitted. First Published Online: 14 Oct 201

Economic efficiency and energy security of smart cities

The aim of this paper is to provide an analysis of the determinants of economic efficiency and to assess the prerequisites for the energy security of smart cities. The main methods of the paper include an economic analysis of the infrastructure improvements that result in reducing the energy demand of the smart cities represented by the intelligent light-emitting diode (LED) street lighting system. Smart LED streetlights are getting increasingly popular in the world’s major metropolises as one of the leading components of the “smart” city. We compare the efficiency of LED street lighting used in smart cities with a commonly used lighting system based on sodium lamps. Our results demonstrate that LED street lighting system can significantly reduce the energy demand of any modern city. Moreover, we show that smart grids might help distribution systems within smart cities to better integrate intermittent renewable energy sources such as wind and solar. The main research novelty of our study compared to previous studies from the literature is the estimation of net profit (NP), Net Discounted Savings (NDS), as well as the total savings (TS) using the example of an average European metropolis. Our findings show that there is a need for better management including strong networks of leaders to drive smart city policies and investments and to cover wider city areas with economically sustainable projects and plans. In addition, our findings yield that smart city projects should aim at finding solution for smart connected local energy storage systems to support more renewable energy sources on the power grids. Our results might be of a special interest for city planners, local government stakeholders, as well as urban policy makers dealing with planning and managing smart cities

Quality of life of the youth: assessment methodology development and empirical study in human capital management

Based on existing approaches to assessing the quality of life and similar concepts in human capital management, a quality of life index for young people is proposed. It takes into account the factors of four groups that determine the subjective satisfaction with the quality of life: Economic environment; Socio-political environment; Social environment; Natural environment. Partial factors and their corresponding quality of life indicators are adapted to the assessments of young people, whose needs and interests differ significantly from other age groups due to differences in the values of generations and features of economic activity at a young age. The methodology developed by the authors is based on taking into account subjective assessments of the level of satisfaction with quality of life factors, as well as their importance based on the determination of weights. As a result of testing the methodology, it was found that the most important factors for a positive perception of quality of life are the social environment, in particular, family relationships and health. Economic and environmental factors have approximately the same effect. Socio-political environment factors have the least influence. Due to material well-being and the quality of socio-political life, satisfaction with the life of employed youth is slightly higher (by 3%). Instead, respondents who do not work are more satisfied with social comfort. The integrated index of quality of life of the interviewed youth is 3,438 points out of 5 maximum. The methodology and results of the assessment are useful for the development of national and regional programs and strategies of human capital development due to increase the level of satisfaction of material, spiritual and cultural needs of young people

Role of fixed investments in economic growth of country: Lithuania in European context

The paper aims to detect character of relationship between fixed investments and economic growth in Lithuania and predict plausible tendencies of further change of considered variables. In order to achieve the indicated task, authors concentrate themselves on two major questions. Firstly, quantitative relationships between investments into major areas of economic activities and Lithuanian economic growth are being estimated. Secondly, comparative analysis of Lithuanian pattern of investment and randomly taken developed European country is being performed. Authors seek to trace how the latter invested during its process of development. Concrete period of observation is being chosen taking into account the current level of Lithuanian economic development. Authors seek to trace plausible consistent patterns of development in terms of relationship between fixed investments and economic growth as countries develop. Obtained results might allow identifying the role of fixed investments, and, if to go further, facilitating forecasts of possible trends of fixed investment and corresponding economic growth. First published online: 14 Oct 201