Exploring the Relationship Between R&D, Education and Entrepreneurship from 2005-

2012 at Global Level

Team Led ZeppelinYi Chun Chien, Jing Fan, Carol Xiayu Zeng, Yixi Zhang

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Abstract

Background: R&D engagement leads to new industries and could also be a crucial part of national economy and competitiveness.

Methods: The report discusses the relationship among R&D, education and entrepreneurship by performing three types of analysis.

Variables: The dataset covers 248 regions from 2005-2012 with 4 dependent variables and 5 independent variables.

Conclusions: R&D investment and the number of journals, patents and trademark would add value in information technology industries. Education boosts expertise of current researchers and technicians in R&D.

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Introduction

• The study provides an overview of the patterns on high-tech export , R&D expenditures among different regions and answers several managerial questions as following:

• Which region performs well in R&D, education and entrepreneurship?

• What are the trends of R&D from 2005 to 2012?• Are there any positive relationships between R&D,

education involvement and entrepreneurship at a global level?

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Problem Statement

• The study investigates the relationship between R&D,

education and entrepreneurship at a global level from

2005 to 2012 and performs three types of analysis:

descriptive analysis, correlation analysis and predictive

analysis.

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Methodology

Hypotheses Data Preprocess

Perform Analysis

Evaluation

● Data Collection● Data Cleaning● Data Warehousing

● Problem Definition● Tool Selection● Variable Selection

● Queries● Reports

● Conclusion● Reasoning 5

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• Data Source:http://data.worldbank.org/indicator/BX.GR.ROYL.CD/countrieshttp://www.gemconsortium.org/key-indicators• Time: Year 2005- 2012• Data Size: 248 regions• Dimensions:

• Developed or developing countries• Income Group• Region

• Tool: IBM Cognos

Variable Name Description

Patents, Journal and Trademark applications

The number of worldwide patent applications filed， journal and trademark published in scientific and engineering fields

High-Tech export High-technology exports are products with high R&D intensity

R&D expenditure Expenditures for R&D are current and capital expenditure on creative work

Researchers/technicians in R&D

Researchers and Technicians in R&D are professionals engaged in R&D(per million people) 7

Variable Selection• 4 Dependent Variables:

• 5 Independent Variables:

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Variable Name DescriptionEducational expenditure per student in tertiary

The total public expenditure per student in tertiary education

Public spending on education(%)

Public expenditure on education / total government expenditure

School enrollment in tertiary(%)

Total enrollment in tertiary education / total population of the five-year age group

Nascent entrepreneurship rate(%)

Percentage of 18-64 population who are currently a nascent entrepreneur

Necessity-driven entrepreneurial activity(%)

Percentage of those involved in total early-stage entrepreneurial activity

Project Conceptual Architecture

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Analytics

•Descriptive Analysis• Region • Trend

•Correlation Analysis• R&D vs. Education• R&D vs. Entrepreneurship

•Predictive Analysis

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Problems Analytics

The ranking of countries measured by R&D expenditure

Pie chart for R&D expenditure by country

Top five countries in high-tech export Histogram for high-tech export by country

Top five countries with greatest scientific impact measured by number of researchers/technicians in R&D

Line chart for number of researchers/technicians in R&D

Descriptive Analysis—Region

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Descriptive Analysis—TrendProblems Analytics

Trend of Education expenditure per student in tertiary from 2005 to 2012

Line Chart by continent/ region/ development levels

Trend of Nascent entrepreneurship rate from 2005 to 2012

Trend of R&D expenditure from 2005 to 2012

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Correlation AnalysisProblems Analytics

Does public spending on education affect patents, journal and trademark applications?

Bar chart by continent/ region/development levels

Does educational expenditure per student in tertiary influence R&D expenditure?

Does Researchers/technicians in R&D correlate to high-tech export

Is Necessity-driven entrepreneurial activity related to researchers/technicians in R&D

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Correlation Analysis

Problems Analytics

Does public spending on education affect High-Tech export?

Trend chart by year based on development levels

Does educational expenditure per student in tertiary influence R&D expenditure?

Is Nascent entrepreneurship rate related to researchers/technicians in R&D

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Predictive Analysis

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Problems Analytics

Will developed and developing countries have upward trend on R&D expenditure?

Trend chart by yearIncremental crosstab by year

Will developed and developing countries have stable trend on High-Tech export?

Will developed and developing countries have upward trend on Educational expenditure per student in tertiary?

Will developed and developing countries keep increasing their necessity-driven entrepreneurial activity?

Sample Analysis 1: Comparison of R&D among different Income Groups

Insight: These line charts represent R&D performance, measured by # of researchers and technicians, # of publications and patent application. It’s shown that high Income countries have better R&D performance than Low(Lower) Income countries.

Sample Analysis 2: Comparison of R&D between Developed and Developing Countries

Developing Countries generally have higher R&D than Developed Countries. For instance, China and South Korea both have very high R&D. However, Developed Countries have more Researchers and Technicians.

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Sample Analysis 3: Correlation between R&D and Education

Insight: The scatter plot describes the relationship between R&D performance and education investment. For Developed countries, R&D is positively correlated with education. Higher school enrollments and more public spending in education, better R&D performance.For Developing countries, the positive impact brought by education investment is not obvious in leading a better R&D performance.

ConclusionsBusiness insights are extracted from descriptive and predictive analysis as well as multi-dimensional analysis by revealing:

● Higher involvement in education and entrepreneurship, better R&D performance

● Increasing involvement in R&D from 2005 - 2012 in different regions and the upward trend continue in the future

● Gap in R&D performance among developed/developing countries, different income groups and regions

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Policy/Managerial ImplicationThe study provides suggestions to companies that are looking for entrepreneurial opportunities and governments to attract entrepreneurs.

● Companies: ○ R&D growth is blooming over the past 8 years○ Top 3 investment regions: (1) North America, (2) East Asia

& Pacific area, (3) Europe and central Asia● Governments:

○ Friendly immigration policy to attract more talents ○ Simplified start-up procedures, tax reductions

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Scope & LimitationsScope:

• Dataset covers 248 regions from 2005-2012

Limitations: • Missing values are eliminated from analysis; • May have some potential independent variables (EX:

high-tech workforce) and temporal factors (EX: armed conflicts, financial crisis, natural disasters) that are not included in analysis.

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Future ResearchOther analytics technologies for future consideration:

• Data Mining:• Various data mining methods, such as regression tree and

logistic regression could be applied to analyze factors that contribute to the development in R&D.

• OLAP:• Store multidimensional data to answer complex and timely

queries along with new data from ETL.

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List of complete references

Retrieved from

• http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1496226

• http://www.ucema.edu.ar/u/gcettolo/WebGlobalGEMReport11.12_1.pdf

• http://data.worldbank.org/indicator/BX.GR.ROYL.CD/countries

• http://www.gemconsortium.org/key-indicators

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Appendix• Source link:➢ http://data.worldbank.org/indicator/BX.GR.ROYL.CD/countries➢ http://www.gemconsortium.org/key-indicators

• Sample Data:

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