New research article by Dr. Nguyễn Phúc Cảnh, Senior Research Associate at Health and Agricultural Policy Research Institute (HAPRI) in Telecommunications Policy, 2021.
Canh Phuc Nguyen, Nadia Doytch. "The impact of ICT patents on economic growth: An international evidence". Telecommunications Policy, 102291, 2021.
ISSN: 0308-5961
DOI: 10.1016/j.telpol.2021.102291
Highlights
• The influences of ICTs patents on economic growth.
• A global sample of 26 advanced and 17 emerging economies from 1998 to 2016.
• ICTs patents have unidirectional causal impacts on economic growth.
• The effects of ICTs patents are dominant in advanced economies.
• ICTs patents have long-run positive growth impacts while total patents are not.
Abstract
This study aims to examine the impact of inventions, measured by the number of new patents, on economic growth. Specifically, we focus on patents in the ICT sector for a global sample of 43 economies, comprising 26 advanced and 17 emerging market economies in the period 1998 to 2016. We use a two-step system GMM to control for potential endogeneity in the data.
Our results are threefold. First, total patents have mutually causal effects with economic growth, but there is no evidence of an impact of total patents on manufacturing sector growth. At the same time, ICT patents have a unidirectional causal impact on both, overall economic growth, and the growth of services and manufacturing. Second, the impact of total patents on economic growth is stronger in advanced economies. At the same time, ICT patents have a positive significant impact on the growth of advanced economies and a negative significant effect on the growth of emerging economies. Third, in the long-run, ICT patents have a positive significant impact on economic growth, while total patents do not.