The Effect of Knowledge Spillover and Institutional Quality On the Innovation Growth in Selected OIC Countries

Document Type : Research Paper

Authors

1 Economics, Economics and Social sciences, Bu-Ali Sina, Hamedan, Iran.

2 Department of Economics, Faculty of Social Science and Economics, Alzahra University, Tehran, Iran

Abstract

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.

Keywords

References

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Journal of Technology Development Management
Volume 6, Issue 4
March 2019
Pages 9-30

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History

  • Receive Date: 18 April 2018
  • Revise Date: 02 January 2018
  • Accept Date: 09 January 2019

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