The Impact Of Innovation Activities On Economic Growth: Empirical Evidence From Multi-Countries
Nguyen Tran Thai Ha, M. Sobar Johari, Le Thi Hong Anh

Faculty of Accounting and Finance, Saigon University, Vietnam

Universitas Muhammadiyah Yogyakarta, Indonesia

School of Marketing and International Business, University of Economics Ho Chi Minh City, Vietnam

Abstract

This study examines the effects of innovation on economic growth by using data of 58 developed and developing countries during 2006-2015 period. R&D expenditures, the number of patents and the number of registered trademarks of each country are used to capture the multiplicity of innovation activities. Using the two-step GMM approach, this study find that R&D expenditures positively correlated with economic growth, similarly with the number of patents and trademarks. It implies that innovation activities play an important role in ensuring the sustainable economic growth. Moreover, this study investigate that this relationship was stronger in high and upper-middle income countries than lower income countries. Besides that, government spending, foreign direct investment, trade openness and labor policies also contribute significantly to economic growth.

Keywords: Innovation, Creativity, Economic Growth, GMM

Topic: International Conference on Islamic Studies in the Digital Era

Link: https://ifory.id/abstract-plain/PYyvaw8j27gT

Web Format | Corresponding Author (Mohammad Syifa Amin Widigdo)