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Education and Innovation in the Context of Economies Globalization
Article in Procedia Economics and Finance · December 2014
DOI: 10.1016/S2212-5671(14)00667-4
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Procedia Economics and Finance 15 ( 2014 ) 1042 – 1046
2212-5671 © 2014 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and peer-review under responsibility of the Emerging Markets Queries in Finance and Business local organization
doi: 10.1016/S2212-5671(14)00667-4
ScienceDirect
Available online at www.sciencedirect.com
Emerging Markets Qu
Education and innovation
glob
Mihai Mihae
a The Bucharest University of Economic
Abstract
Innovation is an essential element to generate sustained
high level of education or a high standard of living. As y
evaluating the innovation of performance evaluation an
economy. But this social and economic future developme
company. That is, the education of future requirements
methods used in education by understanding this social
responsible, capable of reasoning and learning innovative
development of innovation policy to verify that performa
and I refer here in particular to human capital and research
economy with regard to the results-based-generated the tw
outputs). In this context, in the work of analyzing, com
correlation which involves finding the combination of p
hand, and economic growth and employment on the other
© 2013 Published by Elsevier Ltd. Selectio
Markets Queries in Finance and Business l
Keywords: Education; Innovation; GII; HDI; Education Index
* Corresponding author. Tel.: +40-0721-283-704.
E-mail address: mihaela2173 @yahoo.com.
eries in Finance and Business
in the context of economies
alization
laa,*, EmiliaXiYan a
Studies, Bucharest, postal code: 010374, Romania
economic growth. But, we cannot speak of innovation without a
ou well know Global Innovation Index (GII) provides a means of
d refining policy innovation policies for optimum growth of the
nt depends on the intellectual and human resources progress of the
of the company. This implies a change in the techniques and
phenomenon as being capable of creating versatile individuals,
forward -looking. Moreover, the GII is a guide which aims at the
nce on the one hand due to the ability of an economy to innovate,
, and on the other hand, the performance of innovation, that is, an
o pillars of exit (knowledge and technology outputs and creative
paring these indices we note that among them there is a close
olicies to ensure the sustainability of public finance on the one
.
n and/or peer-review under responsibility of Emerging
ocal organization
© 2014 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and peer-review under responsibility of the Emerging Markets Queries in Finance and Business local organization
Mihai Mihaela and Emilia XiYan / Procedia Economics and Finance 15 ( 2014 ) 1042 – 1046 1043
1. Globalisation of the economy
In recent years we can may easily observe that the Nations are moving with big steps towards globalization.
This concept can be interpreted from four different angles: geographical, economic, political and electronics.
The last gives the meaning and characteristics of the current globalization from now i.e. in the socio-political
context present new technologies allow extremely rapid communication. This gives us the sensation of a global
state, in any event, spent in a corner of the planet is found, almost instantly in the other corner.
In the same context, we can say that national economies are evolving under the influence of globalization
generated by globalization.
If we refer to our country, Romania climbed a position until the 31st, in 60 markets analyzed in a ranking
conducted by consulting company Ernst & Young audit, depending on the degree of globalization of the
economy. According to the same sources, Romania occupies the 11th position among those 22 markets
growing rapidly monitored during the study. We have outstanding results, so if we take into account the labor
movement where we are now with 0.77 points above average overall, but also some less worthy: If we refer to
the exchanges of technology and ideas, where the value is 0.51 points below average, and the movement of
capital and finance, with a value of 0.25 points below average.
2. Using Multiple Regression model analysis
2.1. Identification of model variable
Why education? Why innovation?
No State can exist without education. We cannot talk about culture and technology in a country with a low
level of education or of the human development index. In everyday life, we can be inventive or creative, but at
national level is not enough to be just talented. The talent, if isn’t trained is lost. Extrapolating, I can say that a
nation without education may not be an innovative country.
2.2. Definition of multiple model assumptions
As the globalization, in my opinion you need to start from a basic premise; upgrading. This means first and
foremost but industrialization and rationalization, bureaucratization, urbanization, individualization. While the
process of globalization progresses, traditional pale in the face of rules of new values: innovation and
education. On the other hand, if we talk about globalization, we cannot forget and the effects thereof. Besides
enhancing the effectiveness of global economic activities, if we think about the migration of capital,
investments, technology and manpower to areas and areas more profitable, there is also less pleasant side: that
of reducing employment in developing countries or in those where labor productivity has a low level.
At the same time we must not forget that these factors, quantified in the form of indices: the globalization of
Innovation index (GII), L index of education (EI) and unemployment rate, influence – at both the micro and
macro-economic situation of a country. This reflects the evolution of the Human Development Index (HDI).
To demonstrate the link between four indices and dependency of them we chose to analyze their values,
2012, for the countries of the European Union by means of multiple regression.
In this model, the following notations are used for variables which are expressed in real units:
• The index of human development is symbolized with the HDI;
• Global innovation index is denoted by GII;
• Education Index represented by EI;
• Unemployment rate denoted UR;
1044 Mihai Mihaela and Emilia XiYan / Procedia Economics and Finance 15 ( 2014 ) 1042 – 1046
• a – the free term;
• b – the sensitivity of HDI compared to GII;
• c – the sensitivity of HDI in relation to EI;
• d – the sensitivity of HDI in relation to UR
• ε – residual variable.
The parameters b, c and d shows how with many units changed HDI when GII, EI and UR, grow up with
one unit.
By exploiting the above notations, the mathematical model may be defined as follows:
*&+ 噺 ̇ 髪 ̈ ゲ )++ 髪 ̊ ゲ ‘+ 髪 ¸ ゲ 74 髪 ご (1)
As we know, in this model, we study the causal relationship between HDI, the dependent variable, and the
endogenous exogenous variables: GII, EI and UR. But in measuring the HDI trends analysis of the basic
characteristics of the measurement errors may occur or unpredictable component. For these reasons we need
the ε, the variable residual.
Table 1. Multiple regression – 4 indices
Dependent Variable: HDI
Variable Coefficient Std. Error t-Statistic Prob.

2.3. Estimation of parameters, the validation of regression model, and making predictions for variable
endogenous.
After data analysis using Eviews 7.2 software package only notice that only exogenous variable can be
considered important in terms of statistics (probability < 5%), namely: GII with a probability of 0.56%.
Determinative coefficient, R-squared, show the proportion of the total variation of the endogenous
variable that is explained by the independent variables and take values between 0 and 1. Note that the 57,68%
(R-squared) of the variation in the Human Development Index is determined by the three economic variables
observed, which means that the variation of 42.32 is explained by the noneconomic variable.
At the same time we note that the probability associated with the F-test statistics, ~ 0.41%, is less than
5% which means the model is valid, i.e. we can accept – a very small error – that there is a linear dependence
between HDI and GII, and your shape:
茎経荊” 噺 “ど┻はぱぱひのな” 髪 “ど┻どどぬばねは ゲ 罫荊荊” 髪 “ど┻どどぱにぱば ゲ 継荊” 髪 “ど┻どどなぱぱの ゲ 戟迎 (2)
Mihai Mihaela and Emilia XiYan / Procedia Economics and Finance 15 ( 2014 ) 1042 – 1046 1045
Let us not forget that every time we introduce a regression in new exogenous variable correlated with the
dependent variable, R-squared is improved, although it loses a degree of freedom. This can be verified by
comparing the results that can be seen in tables 1 and 2.
Table 2. Multiple regression – 3 indices
Variable Coefficient Std. Error t-Statistic Prob.

As shown, the value of R2 increased after the introduction of a new independent variables, and the
unemployment rate, from 0.513884, in table 2, at 0.576844, in table 1.
3. Interpretation of results
In this section I will present the proposed model generation and estimate knowing that estimation of
parameters of the model was done using the method of least squares and, as I mentioned above, EViews
software, version 4.5. The results of the estimates are presented in table 1.
Values: 0.0056; 0.7860 and 0.1560 represents the probability associated to parameters b, c, and d, for a
relevant meaning of a parameter, that proximity to 0. The value of a parameter is close to 0, so that it becomes
meaningful. As noted in table 1, we can consider relevant Global Innovation index.
Determination report, R2 (R-squared) they use to determine the quality of the model and takes values in the
range [0, 1]. In the analyzed example R2= 0.576844, it follows that the endogenous variable 57.68% (HDI) is
due to the three independent variables. Here, we have the result that the model is good.
On the other hand, Adjusted R-squared = 0.492213 we’re using in order to highlight the number of variables
included in the model to be a danger, as well as the number of observations upon which the model parameters
were estimated. Note that the value is smaller than that of R-squared, which is normal taking into account that
we use a multifactor model
3.1. Verification of my hypothesis
As you well know, this test will check if your chosen model parameters differ significantly from 0 or not to
verify the null hypothesis using the t test econometrically by testing part model. Thus, emit null hypothesis, in
which case the parameters: b, c, d would take the value 0. Under these circumstances, using the t test for
estimation these parameters, we get the following results: 11.22755; 3.228536; 0.276434 and 1.493793.
On the other hand, if the probabilities associated with the parameters we can say: in the case of the
parameter b values lower than 0.05 percent, which means that is statistically significant, while the c and d,
1046 Mihai Mihaela and Emilia XiYan / Procedia Economics and Finance 15 ( 2014 ) 1042 – 1046
where the values are greater than 0,05, meaning that disruptions in activity and system malfunctions are not
relevant in the valuation model.
Durbin Watson statistic (DW) is a statistical test which tests the serial error correlation . It is based on the
assumption that the errors in regression model are generated by a autoregressive process. If the errors are not
correlated, then the value of the DW will be around 2. Durbin-Watson statistic range in value from 0 to 4. A
value of 2 indicates non-autocorrelation; the value 0 indicates the positive autocorrelation; a value of 4
indicates the negative autocorrelation. In the present case, the value of Durbin-Watson is 1.418650.
Concluding the first part represented by statistical tests R-squared and the F Statistic is the most important
part of the output of the test. Everything in terms of importance, including the probability associated to these
tests. Of the null hypothesis that the two tests, it appears that there is no serial correlation equation of
regression errors. But, where the likelihood of both tests is associated with lower levels of relevance on which
you are working, then the null hypothesis is rejected. Here, we not only to reject the absence of serial
correlation. Otherwise, there is no correlation, so the null hypothesis is accepted.
4. Conclusions
In a competitive market with a globalized economy, we can say that innovation is the soul of
competitiveness, both at the micro and macro level.
Innovation is the result which, alongside other factors more or less important, maybe it’s the main source.
Therefore, a coherent innovation policy is based on an educational system.
If we make a comparison between the top 15 regions that spend at least 3.5 percent of its GDP on research
and development, and here we are referring to Germany, Sweden, Finland, Britain and France, we note that the
same country that you find in the top and in the classification of countries in terms of HDI.
If we refer to our country, of statistical data analysis noted large gaps with ease between Romania and the
innovation rates of other countries. In the context of studying, without forgetting the fact that we live in the
heart of the European Union, taking account of the current crisis, we can see that you don’t have to resort to
cutting investment in education and in innovative ideas.
Vital to the process of development of a nation, for a high standard of living, are: education, research and
innovation.
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