Assessment of Connections Between Knowledge- Based Economy Characteristics and Selected Macroeconomic Categories in the European Union's Countries by Means of Panel Models

The aim of the article is to analyze the impact of knowledge-based economy variables on the selected macroeconomic categories - the share of total investments in GDP and the employment rate- in European Union's countries in the years 2000-2007, conducted with application of panel models. Directions of changes occurring in the world economy in recent years show the transformation of the industrial economy into a knowledge-based economy, using the technological and innovative potential. The most vital determinants of economic development are research and development expenditures, effects of this activity revealed in the form of innovations and human capital. Consequently the main subject of research conducted in high developed countries is seeking new sources of innovativeness and methods of creating innovative potential. An essential impact of knowledge and innovations on economic development is also confirmed by the contemporary economics. The aim of the article is to analyze the impact of knowledge-based economy variables on the selected macroeconomic categories - the share of total investments in GDP and the employment rate- in European Union's countries in the years 2000-2007, conducted with application of panel models.