A Nexus Among Technology Input, Research Activity, Innovation, and Economic Growth: A vis-à-vis Analysis between Asia and Europe

Abstract

This study attempts to analyze the influence of technological infrastructure development and the spill-over effect of dynamic growth of technological innovation on the Asian and European economies. Compared to European countries, the economic infrastructure of Asian countries has transformed significantly during the last three decades. Technological progress and higher growth of available engineers and researchers have become pivotal endogenous determinants in the aggregate production function and eventually became the key drivers of economic growth. Compared to European countries, rapid investment in technology import and a higher number of technologically competent available workforce galvanized uplifted and speedy productivity rates, causing positive economic growth in the Asian economy. The interrelation between technological progress and economic growth is summarized and analyzed by using quantitative methods. The paper stu­dies the nexus between technological progress, the availability of engineers and researchers, and economic growth by applying the dynamic Generalised Method of Moments (GMM) method to the available quantitative data (2013-2017) of chosen Asian and European countries. The econometric results show a significant effect of technological progress and innovation on economic growth. The empirical insight is of particular interest to policymakers as it helps to enhance internal and external technology and innovation development policies for sustainable economic growth in Asian and European countries.