Unveiling the Linkages between Economic Complexity, Innovation and Growth: The Case of High-Income and Upper Middle-Income Economies

Abstract

This article explores the essential variables of economic complexity, innovation, and growth by researching the relationships between imperative economic indicators in selected high-income and upper middle-income economies. The economic complexity and innovation of the observed economies are robustly linked to their economic growth. The goal of this article is to investigate the significance of economic complexity and innovation in encouraging economic growth in high-income and upper middle-income economies. Miscellaneous methodological measurement instruments have been applied towards exploring the linkages between the crucial variables of economic complexity, innovation, and economic growth. The empirical data necessary for conducting this exploration were accumulated from primary and auxiliary sources. Analysis of the observed economies was performed using the statistical software package SPSS 25. The exploration results reveal the essential determinants of economic complexity and innovation for economic growth in selected countries. The interrelated determinants supervised for enhancing innovation and growth are linked to synthesized indicators of economic complexity. Confirmation of the heterogeneity between essential variables and awareness of sensitivity is the foundation for the subsequent acceptance of convenient economic complexity indicators for improvement of the critical fields of national economies.