Iranian Research Organisation for Science and Technology Journal of Technology Development Management 2008-5060 6 4 2019 03 16 The Effect of Knowledge Spillover and Institutional Quality On the Innovation Growth in Selected OIC Countries The Effect of Knowledge Spillover and Institutional Quality On the Innovation Growth in Selected OIC Countries 9 30 780 10.22104/jtdm.2019.2862.1967 FA Vahid Omidi Economics, Economics and Social sciences, Bu-Ali Sina, Hamedan, Iran. 0000-0003-2074-3920 Abolfazl Shahabadi Department of Economics, Faculty of Social Science and Economics, Alzahra University, Tehran, Iran 0000-0002-9316-8296 Nader Mehregan Economics, Economics and Social sciences, Bu-Ali Sina, Hamedan, Iran. Journal Article 2018 04 18 Endogenous growth theory after Romer (1990) emphasizing on innovation as the most prominent factor which affects economic growth. In this regard, Global Competitiveness Report rank countries from the most to the least developed ones based on their stage of innovation. Since factors which affect innovation can be categorized into inner and outer ones, in this study we try to measure the effect of outer ones on innovation growth. Hence, FDI and import of Intermediary and capital goods are identified as two channels which innovation’s spillover can affect innovation growth. Then, 29 members of the Organization of Islamic Cooperation in the period 2011-2016 have chosen to test hypotheses. Results show that, while the impact of the innovation spillover of Intermediary and capital goods on innovation growth was positive, but the innovation spillover of FDI was negative. Also, improvement in institutional quality shows improvement in the effectiveness of innovation spillover from both channels. Endogenous growth theory after Romer (1990) emphasizing on innovation as the most prominent factor which affects economic growth. In this regard, Global Competitiveness Report rank countries from the most to the least developed ones based on their stage of innovation. Since factors which affect innovation can be categorized into inner and outer ones, in this study we try to measure the effect of outer ones on innovation growth. Hence, FDI and import of Intermediary and capital goods are identified as two channels which innovation’s spillover can affect innovation growth. Then, 29 members of the Organization of Islamic Cooperation in the period 2011-2016 have chosen to test hypotheses. Results show that, while the impact of the innovation spillover of Intermediary and capital goods on innovation growth was positive, but the innovation spillover of FDI was negative. Also, improvement in institutional quality shows improvement in the effectiveness of innovation spillover from both channels. https://jtdm.irost.ir/article_780_a8e864d04c95572d1aece099af852d0a.pdf