Asian Journal of Innovation and Policy

Asian Society for Innovation and Policy (아시아기술혁신학회)
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Knowledge Capital in Economic Growth: A Panel Analysis of 120 Countries

  • Lim, Dong-Geon (Department of Agricultural Economics and Rural Development, Seoul National University) ;
  • Jung, Jin Hwa (Department of Agriculture Economics and Rural Development, Research Institute for Agriculture and Life Sciences, Seoul National University)
  • Received : 2017.04.03
  • Accepted : 2017.04.27
  • Published : 2017.04.28
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Abstract

This paper approaches knowledge capital as social infrastructure and analyzes its impact on economic growth. To this end, we constructed a panel dataset for 120 countries for the years 2000-2014 and estimated the economic growth function using the panel analysis. As proxies for knowledge capital, we used the R&D expenditure per capita and the number of patent applications per thousand people in each country, both measured in stock. Economic growth was measured in terms of real GDP per capita and real value added per capita at the industry level. The empirical findings demonstrate that knowledge capital accumulated in a society significantly promotes economic growth. Especially R&D stock increases real value added per capita in all industries-not only manufacturing, but also services and agriculture-implying substantial inter-industry spillover effects. The findings of this study suggest that knowledge capital boosts economic growth as core social infrastructure.

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References

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