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High-tech human capital: do the richest countries invest the most?

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  • Tiago Neves Sequeira

Abstract

Research and Development (R&D) endogenous growth models predict and most evidence show that investment in R&D increase with economic development. We consider the type of human capital mainly used in research labs and show that the richest countries are investing proportionally less than middle income countries in engineering and technical human capital. We generalize this result, controlling for other explanatory variables, cross-time error correlations, heteroskedaticity and endogeneity bias. Thus, we establish a stylized fact (about human capital composition) that is a puzzle to economic theory: the ratio of high-tech to low-tech human capital presents an inverted U-shaped relationship with GDP per capita.

Suggested Citation

  • Tiago Neves Sequeira, 2003. "High-tech human capital: do the richest countries invest the most?," Nova SBE Working Paper Series wp430, Universidade Nova de Lisboa, Nova School of Business and Economics.
    • Handle: RePEc:unl:unlfep:wp430
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    Cited by:

    1. Mattoo, Aaditya & Mishra, Deepak, 2008. "Foreign Professionals And Domestic Regulation," Policy Research Working Paper Series 4782, The World Bank.
    2. Neves Sequeira Tiago & Reis Ana B, 2006. "Human Capital Composition, R&D and the Increasing Role of Services," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(1), pages 1-25, June.
    3. Tiago Neves Sequeira, 2008. "Transitional Dynamics Of An Endogenous Growth Model With An Erosion Effect," Manchester School, University of Manchester, vol. 76(4), pages 436-452, July.
    4. Catherine L. Mann, 2003. "Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth," Policy Briefs PB03-11, Peterson Institute for International Economics.

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    More about this item

    Keywords

    Human capital composition; high-tech human capital; R&D; Development;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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