FORMAL AND NON-FORMAL EDUCATION AND TRAINING AS AN INSTRUMENT FOSTERING INNOVATION AND COMPETITIVENESS IN EU MEMBER COUNTRIES

An important role in economic development and competitiveness is played by human capital, that is believed to lead to the growth of innovation. The innovative activities of companies, with a well-educated workforce as an essential component, are a necessary condition for any economy to achieve a competitive advantage in the international arena. The study objective was to investigate the relationship between the type of education (formal or non-formal) of individuals aged 25-64 and the level of innovation in the European Union member countries. The study uses data provided by Eurostat from three international surveys: The Labor Force Survey (LFS), Adult Education Survey (AES) and Community Innovation Surveys (CIS). The econometric analysis was carried out using tobit regression models. The study shows that innovation levels of EU countries, as measured by the synthetic SII index strongly depend on 1) the share of people with tertiary education undertaking additional formal or non-formal education, 2) the share of employees undertaking additional formal education, and 3) the share of persons undertaking additional formal or non-formal education. Among the variables studied, the smallest impact on the innovativeness of economies was that of the share of persons undertaking additional formal education. The results indicate a significant and positive role of additional education in increasing the level of innovation and competitiveness in the EU economies.