A quantitative investigation into how recessions effect the european innovation and the energy industry

Abstract

This study examines the influence of the Financial Crisis, Eurozone Crisis, and Covid-19 Pandemic recessions on European innovation and energy. To test the hypotheses, Pooled Ordinary Least Squares (OLS) Regression and Pearson's Correlation Coefficient tests were applied to the sample metric data. The results indicate that recessions have a positive effect on innovation, negative effect on energy and detail a negative relationship between Research and Development (R&D) expenditure and Patent applications for both residents and non-residents. The findings suggest that despite the emergence of creative disruption, European innovation and energy remain vulnerable to the repercussions of recessions.