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The Impact of Innovation and Economic Growth in Developed Countries

Author

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  • Sayef Bakari

    (LIEI, Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, Tunis, Tunisia, and Faculty of Legal, Economic and Management Sciences of Jendouba, University of Jendouba, Jendouba, Tunisia)

Abstract

This research examines the influence of innovation on the economic growth of 24 developed countries over the period from 1990 to 2021. Employing the static gravity model alongside the generalized method of moments, the empirical findings demonstrate a notable and positive impact of innovation on economic growth. Furthermore, employing cointegration analysis and the Panel Vector Error Correction model, the research confirms that innovation exerts a favorable and substantial influence on both short-term and long-term economic growth. Based on these findings, it is recommended to actively promote and support innovation in developed countries. This could involve implementing policies that foster research and development, ease access to financial resources for innovative firms, and establish a regulatory framework conducive to fostering innovation.

Suggested Citation

  • Sayef Bakari, 2024. "The Impact of Innovation and Economic Growth in Developed Countries," Economic Research Guardian, Weissberg Publishing, vol. 14(1), pages 32-54, June.
    • Handle: RePEc:wei:journl:v:14:y:2024:i:1:p:32-54
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    More about this item

    Keywords

    Innovation; Economic growth; Static Gravity Model; GMM; Panel VECM; Developed countries;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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