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The growth effects of knowledge-based technological change on Taiwan’s industry: A comparison of R&D and education level

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  • Wang, Lan-Hsun
  • Liao, Shu-Yi
  • Huang, Mao-Lung

Abstract

This paper employs data envelopment analysis (DEA) and the Malmquist index (MI) to investigate the growth effects of knowledge-based technological change and technological efficiency change on the output of the industrial sector in Taiwan. The results reveal two main findings: First, due to the lack of knowledge-based scale efficiency, there is no improvement in knowledge-based technological efficiency during the period from 1997 to 2019. Although both the direction of the change in R&D expenditure per researcher and that in education spending time per worker can explain the knowledge-based technological efficiency change, the long-term average of the growth rate of technical efficiency change is negative; thus, the positive coefficient of the technical efficiency change to output growth still makes a negative contribution to the output growth. In other words, if the scale efficiency can be improved, the contribution of knowledge-based technological efficiency change to output growth can be reversed.

Suggested Citation

  • Wang, Lan-Hsun & Liao, Shu-Yi & Huang, Mao-Lung, 2022. "The growth effects of knowledge-based technological change on Taiwan’s industry: A comparison of R&D and education level," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 525-545.
    • Handle: RePEc:eee:ecanpo:v:73:y:2022:i:c:p:525-545
    DOI: 10.1016/j.eap.2021.12.009
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    More about this item

    Keywords

    knowledge-based technological change; DEA; Malmquist Index; Industrial growth; R&D;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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