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ICT Diffusion, R&D Intensity, and Economic Growth: a Dynamic Panel Data Approach

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  • Bahar Bayraktar Sağlam

    (Hacettepe University)

Abstract

Using panel data of 34 Organization for Economic Co-operation and Development (OECD) countries from 1990 to 2012, this article investigates the intricate link among ICT diffusion, R&D intensity, and economic growth by employing Panel VAR techniques. The novelty of this paper is to identify the causality channels among R&D, ICTs, and economic growth. Econometric evidence yields that bi-directional causality takes place between ICTs and economic growth. While ICT diffusion leads to a rise in the share of R&D personnel in total employment, it has no causal impact on the share of income devoted to R&D. In this context, empirical results offer that OECD countries need to support the development of ICTs not only to foster economic growth but also to enhance the R&D sector.

Suggested Citation

  • Bahar Bayraktar Sağlam, 2018. "ICT Diffusion, R&D Intensity, and Economic Growth: a Dynamic Panel Data Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 636-648, June.
    • Handle: RePEc:spr:jknowl:v:9:y:2018:i:2:d:10.1007_s13132-016-0353-0
    DOI: 10.1007/s13132-016-0353-0
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic growth; Information and communication technologies; R&D; Dynamic panel data;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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