High-tech human capital: Do the richest countries invest the most?
AbstractResearch and Development (R&D) endogenous growth models predict and most evidence show that investment in R&D increase with economic development. We consider the type of human capital mainly used in research labs and show that the richest countries are investing proportionally less than middle income countries in engineering and technical human capital. We generalize this result, controlling for other explanatory variables, cross-time error correlations, heteroskedaticity and endogeneity bias. Thus, we establish a stylized fact (about human capital composition) that is a puzzle to economic theory: the ratio of high-tech to low-tech human capital presents an inverted U-shaped relationship with GDP per capita.
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Bibliographic InfoPaper provided by Universidade Nova de Lisboa, Faculdade de Economia in its series FEUNL Working Paper Series with number wp430.
Length: 14 pages
Date of creation: 2003
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human capital composition; high-tech human capital; R&D; Development;
Other versions of this item:
- Neves Sequeira Tiago, 2003. "High-Tech Human Capital: Do the Richest Countries Invest the Most?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 3(1), pages 1-28, September.
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
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