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The effect of ICT development on innovation: evidence from G-20 countries

Author

Listed:
  • Rudra P. Pradhan

    (National Informatics Centre)

  • Ajoy K. Sarangi

    (National Informatics Centre
    Indian Institute of Technology)

  • Ashim Sabat

    (Steel Authority of India Limited (SAIL))

Abstract

We study the interactions between information and communication technology (ICT) development and innovation in G-20 countries over 1961–2019. We establish whether there is temporal causality between these two variables. Employing the vector error correction modelling (VECM) framework, our findings render a grid of short-run and long-run causal relationships between ICT development and innovation, including long-run unidirectional causality from innovation to ICT development.

Suggested Citation

  • Rudra P. Pradhan & Ajoy K. Sarangi & Ashim Sabat, 2022. "The effect of ICT development on innovation: evidence from G-20 countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 361-371, June.
    • Handle: RePEc:spr:eurase:v:12:y:2022:i:2:d:10.1007_s40822-021-00189-y
    DOI: 10.1007/s40822-021-00189-y
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    References listed on IDEAS

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    4. Mokyr, Joel, 2010. "The Contribution of Economic History to the Study of Innovation and Technical Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 11-50, Elsevier.
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    7. Rudra P. Pradhan & Mak B. Arvin & Mahendhiran Nair & Sara E. Bennett, 2020. "Sustainable economic growth in the European Union: The role of ICT, venture capital, and innovation," Review of Financial Economics, John Wiley & Sons, vol. 38(1), pages 34-62, January.
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    Cited by:

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    More about this item

    Keywords

    ICT development; Innovation; G-20 countries;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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