Table 2. Open in new tab Regression...

	Base models	Interaction models
R&D expenditure	489.40**	361.39**	445.49**	269.79**	170.51*	238.34**
	(37.84)	(44.24)	(39.34)	(76.53)	(83.89)	(77.61)
Social expenditure	24.18**	27.89**	25.61**	-3.04	5.85	0.31
	(6.61)	(6.98)	(6.62)	(10.32)	(11.71)	(10.29)
R&D expenditure* Social expenditure				16.82**	14.13**	15.81**
				(4.98)	(5.29)	(4.99)
College graduates	1.26	7.16	3.52	-3.83	2.54	-1.52
	(5.76)	(5.89)	(5.69)	(5.88)	(6.10)	(5.84)
Unemployment rate	-3.87	-2.51	-3.41	-4.27	-2.74	-3.77
	(4.32)	(4.36)	(4.25)	(4.29)	(4.34)	(4.22)
Business environment	0.71	1.39	0.92	1.30	1.93*	1.49
	(1.03)	(1.04)	(1.01)	(1.04)	(1.05)	(1.02)
Regulatory quality	326.75**	269.84**	307.08**	347.00**	290.93**	328.61**
	(72.43)	(79.29)	(73.46)	(71.64)	(79.20)	(72.86)
Constant	-627.60**	-474.20**	-578.89**	-342.56*	-241.44	-316.35
	(143.79)	(145.53)	(153.81)	(165.45)	(168.86)	(172.92)
N	545	545	545	545	545	545
R² (within)	0.2918	0.2973		0.3010	0.3072
Wald χ²			314.93			338.08
Hausman test (Prob.> χ²	0.0000		0.0000

Base models

Interaction models

Variables

Random
coef. (s.e.)

Fixed
coef. (s.e.)

GEE
coef. (s.e.)

Random
coef. (s.e.)

Fixed
coef. (s.e.)

GEE
coef. (s.e.)

R&D expenditure

489.40**

361.39**

445.49**

269.79**

170.51*

238.34**

(37.84)

(44.24)

(39.34)

(76.53)

(83.89)

(77.61)

Social expenditure

24.18**

27.89**

25.61**

-3.04

5.85

0.31

(6.61)

(6.98)

(6.62)

(10.32)

(11.71)

(10.29)

R&D expenditure* Social expenditure

16.82**

14.13**

15.81**

(4.98)

(5.29)

(4.99)

College graduates

1.26

7.16

3.52

-3.83

2.54

-1.52

(5.76)

(5.89)

(5.69)

(5.88)

(6.10)

(5.84)

Unemployment rate

-3.87

-2.51

-3.41

-4.27

-2.74

-3.77

(4.32)

(4.36)

(4.25)

(4.29)

(4.34)

(4.22)

Business environment

0.71

1.39

0.92

1.30

1.93*

1.49

(1.03)

(1.04)

(1.01)

(1.04)

(1.05)

(1.02)

Regulatory quality

326.75**

269.84**

307.08**

347.00**

290.93**

328.61**

(72.43)

(79.29)

(73.46)

(71.64)

(79.20)

(72.86)

Constant

-627.60**

-474.20**

-578.89**

-342.56*

-241.44

-316.35

(143.79)

(145.53)

(153.81)

(165.45)

(168.86)

(172.92)

545

R² (within)

0.2918

0.2973

0.3010

0.3072

Wald χ²

314.93

338.08

Hausman test (Prob.> χ²

0.0000

	Base models	Interaction models
R&D expenditure	489.40**	361.39**	445.49**	269.79**	170.51*	238.34**
	(37.84)	(44.24)	(39.34)	(76.53)	(83.89)	(77.61)
Social expenditure	24.18**	27.89**	25.61**	-3.04	5.85	0.31
	(6.61)	(6.98)	(6.62)	(10.32)	(11.71)	(10.29)
R&D expenditure* Social expenditure				16.82**	14.13**	15.81**
				(4.98)	(5.29)	(4.99)
College graduates	1.26	7.16	3.52	-3.83	2.54	-1.52
	(5.76)	(5.89)	(5.69)	(5.88)	(6.10)	(5.84)
Unemployment rate	-3.87	-2.51	-3.41	-4.27	-2.74	-3.77
	(4.32)	(4.36)	(4.25)	(4.29)	(4.34)	(4.22)
Business environment	0.71	1.39	0.92	1.30	1.93*	1.49
	(1.03)	(1.04)	(1.01)	(1.04)	(1.05)	(1.02)
Regulatory quality	326.75**	269.84**	307.08**	347.00**	290.93**	328.61**
	(72.43)	(79.29)	(73.46)	(71.64)	(79.20)	(72.86)
Constant	-627.60**	-474.20**	-578.89**	-342.56*	-241.44	-316.35
	(143.79)	(145.53)	(153.81)	(165.45)	(168.86)	(172.92)
N	545	545	545	545	545	545
R² (within)	0.2918	0.2973		0.3010	0.3072
Wald χ²			314.93			338.08
Hausman test (Prob.> χ²	0.0000		0.0000

Table 2.

Open in new tab

Regression results (Welfare: social expenditure).

	Base models			Interaction models
Variables	Random coef. (s.e.)	Fixed coef. (s.e.)	GEE coef. (s.e.)	Random coef. (s.e.)	Fixed coef. (s.e.)	GEE coef. (s.e.)
R&D expenditure	489.40**	361.39**	445.49**	269.79**	170.51*	238.34**
	(37.84)	(44.24)	(39.34)	(76.53)	(83.89)	(77.61)
Social expenditure	24.18**	27.89**	25.61**	-3.04	5.85	0.31
	(6.61)	(6.98)	(6.62)	(10.32)	(11.71)	(10.29)
R&D expenditure* Social expenditure				16.82**	14.13**	15.81**
				(4.98)	(5.29)	(4.99)
College graduates	1.26	7.16	3.52	-3.83	2.54	-1.52
	(5.76)	(5.89)	(5.69)	(5.88)	(6.10)	(5.84)
Unemployment rate	-3.87	-2.51	-3.41	-4.27	-2.74	-3.77
	(4.32)	(4.36)	(4.25)	(4.29)	(4.34)	(4.22)
Business environment	0.71	1.39	0.92	1.30	1.93*	1.49
	(1.03)	(1.04)	(1.01)	(1.04)	(1.05)	(1.02)
Regulatory quality	326.75**	269.84**	307.08**	347.00**	290.93**	328.61**
	(72.43)	(79.29)	(73.46)	(71.64)	(79.20)	(72.86)
Constant	-627.60**	-474.20**	-578.89**	-342.56*	-241.44	-316.35
	(143.79)	(145.53)	(153.81)	(165.45)	(168.86)	(172.92)
N	545	545	545	545	545	545
R² (within)	0.2918	0.2973		0.3010	0.3072
Wald χ²			314.93			338.08
Hausman test (Prob.> χ²	0.0000			0.0000

	Base models			Interaction models
Variables	Random coef. (s.e.)	Fixed coef. (s.e.)	GEE coef. (s.e.)	Random coef. (s.e.)	Fixed coef. (s.e.)	GEE coef. (s.e.)
R&D expenditure	489.40**	361.39**	445.49**	269.79**	170.51*	238.34**
	(37.84)	(44.24)	(39.34)	(76.53)	(83.89)	(77.61)
Social expenditure	24.18**	27.89**	25.61**	-3.04	5.85	0.31
	(6.61)	(6.98)	(6.62)	(10.32)	(11.71)	(10.29)
R&D expenditure* Social expenditure				16.82**	14.13**	15.81**
				(4.98)	(5.29)	(4.99)
College graduates	1.26	7.16	3.52	-3.83	2.54	-1.52
	(5.76)	(5.89)	(5.69)	(5.88)	(6.10)	(5.84)
Unemployment rate	-3.87	-2.51	-3.41	-4.27	-2.74	-3.77
	(4.32)	(4.36)	(4.25)	(4.29)	(4.34)	(4.22)
Business environment	0.71	1.39	0.92	1.30	1.93*	1.49
	(1.03)	(1.04)	(1.01)	(1.04)	(1.05)	(1.02)
Regulatory quality	326.75**	269.84**	307.08**	347.00**	290.93**	328.61**
	(72.43)	(79.29)	(73.46)	(71.64)	(79.20)	(72.86)
Constant	-627.60**	-474.20**	-578.89**	-342.56*	-241.44	-316.35
	(143.79)	(145.53)	(153.81)	(165.45)	(168.86)	(172.92)
N	545	545	545	545	545	545
R² (within)	0.2918	0.2973		0.3010	0.3072
Wald χ²			314.93			338.08
Hausman test (Prob.> χ²	0.0000			0.0000

GEE, Generalized Estimating Equation; R&D, research and development; Prob., probability.

*p < .05; **p < .01

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