Title: The Effect of Innovation on Economic Growth: Evidence from GMM Estimates Subtitle: Measuing Impacts and Effects

DOI: 10.5176/2251-2039_IE16.14

Authors: Rudra P. Pradhan, Rana P. Maradana, Sauarav Dash, Kunal Gaurav

Abstract: Does innovation have a causal effect on per capita economic growth? Using generalized method of moment (GMM), we found an evidence that innovation has a substantial positive impact on per capita economic growth, after trade openness, foreign direct investment, ICT infrastructure, government final consumption expenditure, gross fixed capital formation, stock market capitalization, private credit by deposit money banks, and venture capital investment, were used as control variables in the growth equation. Our results are robust across different measures of innovation intensity on per capita economic growth.

Keywords: Innovation, per capita economic growth, GMM