Quadrilateral Relationship Between Information and Communications Technology, Patent Applications, Research and Development Expenditures, and Growth Factors: Evidence from the Group of Seven (G-7) Countries

Abstract

The quadrilateral relationship between information and communications technology (ICT), patent applications, research and development expenditures and specific growth factors examine to formulate the broad-based growth policies in the context of Group of seven (G-7) countries, over the period of 1995-2013. The ICT variables are explained by internet users, mobile cellular subscriptions and high-technology exports; while research and development (R&D) variables include R&D expenditures and researchers in R&D. Patent data is used to evaluate the amount of innovation undertaken in the G-7 countries and it comprises residential patent applicants and non-residential patent applicants. Finally, the study used three growth factors including GDP per capita, foreign direct investment (FDI) inflows and GDP per unit use of energy for appraising the growth reforms in the G-7 countries. The results show that there is a significant and positive relationship between high-technology exports and growth factors, while there is a negative relationship between residential patent applicants and per capita GDP (and FDI inflows).region. There is a negative relationship between R&D expenditures and GDP per capita (and energy efficiency), while researchers involved in R&D activities significantly enlarge the per capita GDP and energy efficiency in the G-7 countries. The results of variance decomposition analysis confirmed the importance of ICT over the next 10 years period. The study concludes that R&D expenditures and innovation required strong policy vista in order to amplify the growth factors in the region.

New Indicators of Innovation Activity in Economic Growth Models

“…Considering the economic growth driven by innovations and knowledge, the level of economic freedom is not determining, contrary to the conclusions of Goel & Saunoris (2017). Similarly, it does not matter whether residential or non-residential patent applications predominate in the economy, unlike shown by Khan et al (2017). What determines the effect of innovation and knowledge is the level of technological sophistication, which is closely related to the level of investment in R&D and the production level of an economy.…”

“…We derived the level of technological sophistication from the Technology Index (TI) variable, which we constructed using the Min-Max normalisation method from six variables retrieved from the World Bank database, namely Fixed Telephone Subscriptions (per capita), Mobile Cellular Subscriptions (per capita), Electric Power Consumption (kWh per capita), Fixed Broadband Subscriptions (per capita), High-Technology Exports (per capita, current USD), and Individuals Using the Internet (% of the population). These or similar variables are commonly used as measures of the technological sophistication of the country (e.g., Hasan & Tucci, 2010; Khan et al, 2017;Pradhan et al, 2017). This choice was inspired by Kim et al (2012), who identified a varying degree of contribution of innovations to growth because of differences in countries' technological capabilities.…”

Modeling the innovative component of sustainable development of oil and gas enterprises. The case of PJSC ROSNEFT

“…In their works Russian and foreign scientists [4][5][6][7][8][9][10][11][12] have proved that innovative technologies are the main component of the competitiveness of both an enterprise and a country. PJSC ROSNEFT pays special attention to the innovation and the introduction of breakthrough technologies in production.…”

The mediating role of governance in creating a nexus between investment in artificial intelligence (AII) and human well-being in the BRICS countries

“…The BRICS countries (Brazil, Russia, India, China, and South Africa) represent a diverse group of developing economies characterized by rapid technological advancements, varying levels of growth, and governance and institutional development. They often work together to address economic challenges, promote trade, and collaborate on global issues like climate change, security, and development (Khan, et al, 2017). As these nations strive for sustained economic growth and development, the interplay between artificial intelligence (AI) investment, governance, and their impact on human well-being (human development) becomes a topic of significant interest and importance.…”