The Effect of Innovation and Technology Towards Economic Growth in Asia

Abstract

This study aims to find out the effects of innovation and technology on economicgrowth in Asian ountries in 2000-2017, and to analyse the different impactsperceived in upper-middle-income ountries and lower-middle-income countries inAsia. This study uses data published by the World Bankand WIPO (World Intellectual Property Organization) and uses panel data regression. Patentpplications have significant effects on economic growth, both in upper and lowermiddle-incomecountries. meanwhile, R&D expenditure has an insignificant effecton economic growth in both clusters. Moreover, estimation results from three otherindependent variables: FDI, export, and labour show that these three variables havea significant effect on the real GDP of 18 Asian Countries in 2000 - 2017. Theresults of his study indicate that there is no significant difference of the effects ofinnovation and technology toward economic growth between upper-middle-incomecountries and lower-middle-income countries.