Technological Potential of European Economy. Proposition of Measurement with Application of Multiple Criteria Decision Analysis

Abstract

The subject of the research is a technological potential of European Economies at macroeconomic level. The main aim of the article is to assess relative position and eventual progress in that sphere obtained by Central European economies that joined the European Union after the year 2004. Additional goal of the research is to verify usefulness of variables that can be used in measurement of technological potential at macroeconomic level in European economies with application of multiple criteria decision analysis methodology. In the research the phenomenon of technological potential was treated as a multivariate problem. Thus, in order to measure it the multiple criteria decision analysis approach based on the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) was applied. The research was conducted with application of Eurostat Data and diagnostic variables proposed for measurement of technological potential at macro level in European members states. It was done for the years 2008-2012. The applied procedure of verification of information value of potential diagnostic variables enabled to select six final diagnostic variables. The conducted research enabled to point the European leaders, which can be treated as benchmark countries and the source of good practices in the process of forming policy guidelines aiming at supporting technological development. The research showed significant progress obtained by some new European Union members states, which confirms modernization process of Central European economics.