Abstract

This article uses data from 41 OECD and nonOECD (Organisation for Economic Co-operation and Development) countries to examine the predictions of nonscale endogenous growth theories that an increase in the share of researchers in labour force leads to an increase in innovation and innovation raises per capita output. The results show that an increase in the share of researchers in labour force increases innovation only in the large market OECD countries. Moreover, an increase in innovation raises per labour GDP (Gross Domestic Product) in all nonOECD countries except for low income countries, while raising it only in the high-income OECD countries. These findings suggest that though the large market OECD countries are the world leader in innovation, nonOECD countries benefit more from it in promoting their growth.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.