The Effects of Technological Innovations on Competitiveness and Economic Growth
Technological Innovation Capacity and Economic Growth NexusEsra Alp, Ünal Seven, Yener Coşkun
As suggested by the literature on endogenous growth, technological innovation plays a significant role in economic growth. The goal of this study is to explore the empirical link between technological innovation capacity and economic growth over the period between 2000 and 2016. By utilizing panel-type econometric models, we specifically ask whether a number of indicators such as research and development expenditures, patent applications and high-technology exports as the proxy of innovation play a role in the GDP formation of 20 developed and developing countries. The evidence suggests that total patent applications growth, total labor force growth and gross capital formation growth are statistically significant and positively correlated with economic growth. Our results suggest interesting policy implications for the long-term growth and competitiveness benefits of investing in technological innovation capacities and also some important insights into how investment in human capital may contribute to an increase in economic growth.