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Cognitive skills, innovation and technology diffusion

  • Messinis, George
  • Ahmed, Abdullahi D.

This article presents new international estimates of human capital for the period 1970–2003. The new latent index is used to re-examine the Benhabib and Spiegel (2005) model of technology diffusion in a horse-race with the competing indicators of Barro and Lee (2010) and Hanushek and Wößmann (2009). Analysis employs cross-section and panel econometrics, extends beyond the Cobb–Douglas technology, and deals with endogeneity bias. Robust evidence confirms the significance of cognitive skills as a driver of innovation and diffusion. Although there is substantial diversity, the new human capital index has declined in many countries in Africa and the OECD.

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File URL: http://www.sciencedirect.com/science/article/pii/S0264999312003379
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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 30 (2013)
Issue (Month): C ()
Pages: 565-578

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Handle: RePEc:eee:ecmode:v:30:y:2013:i:c:p:565-578
DOI: 10.1016/j.econmod.2012.10.002
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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