Expenditures on research and development activities as a factor in the development of innovation

The development of research and development is a key process leading to the growth of innovation in the economy, and its conduct is important in the development and improvement of the level of competitiveness. Innovative activity consists in improving the quality of products and services, applying various concepts in business management as well as anticipating the possibilities of satisfying future needs of clients or even creating them. The size and structure of these activities are very diverse and depend on the level of economic development of a given country. Among the European Union countries can be distinguished those that allocate huge amounts for investments in R & D, that is, developed countries, and countries such as Poland, which are still spending too little on research and development activities. In addition, the subjective structure of investments is an important issue. The purpose of this publication is to analyze the size and structure of expenditures on research and development in the European Union, in particular, paying attention to the condition and general causes of insufficient R & D activity in the Polish economy.