IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

A Panel Causality Analysis of the Relationship among Research and Development, Innovation, and Economic Growth in High-Income OECD Countries

Listed author(s):
  • Bulent Guloglu

    (Department of Econometrics, Pamukkale University, Turkey)

  • R. Baris Tekin


    (Marmara University, Turkey)

Registered author(s):

    This study examines possible causal relations among research and development (R&D) expenditures, innovation and economic growth in high income OECD countries. We test for both pairwise and multivariate causal relations by estimating a trivariate panel vector autoregressive (VAR) model through the GMM and panel fixed effects methods. Our bivariate panel causality test results suggest that R&D expenditures Granger cause innovation measured as the number of triadic patents; while technological innovations Granger cause economic growth, as presumed by endogenous growth theory. A reverse causality relation does also exist between economic growth and innovation, that is, the rate of growth of output accelerates the rate of technological change. Our multivariate causality tests further reveal that the market size and the rate of innovation together Granger cause R&D activity; while an increase in national output and R&D intensity jointly Granger–cause technological change. These findings suggest that both the “technology-push” and “demand-pull” models of innovation equally make sense.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Eurasia Business and Economics Society in its journal Eurasian Economic Review.

    Volume (Year): 2 (2012)
    Issue (Month): 1 (Spring)
    Pages: 32-47

    in new window

    Handle: RePEc:ebz:eerjrn:v:2:y:2012:i:1:p:32-47
    Contact details of provider: Phone: 90 (212) 220 54 51
    Fax: 90 (212) 220 54 52
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ebz:eerjrn:v:2:y:2012:i:1:p:32-47. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.