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Evaluating innovation-driven economic growth: a case of Jordan

Author

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  • Ahmad Fathi Alheet

    (Al-Ahliyya Amman University, Jordan)

  • Yacoub Hamdan

    (Al-Ahliyya Amman University, Jordan)

Abstract

The aim of the research was to examine the role of innovation in promoting economic growth in Jordan. Innovation is a key factor for businesses and a significant element of growth. However, in the case of promoting economic growth, its significance differs in terms of region and countries. To explore the innovation-growth link, the study adopted a quantitative approach, using Jordan’s macroeconomic data of 18 years (2000-2017). The data was collected from secondary sources using the World Bank database. It was found in the research that the progress in Jordan in relation to technology and innovation does not contribute to GDP growth. Internet penetration in Jordan increased, but GDP saw a persistent decline. However, patent applications (non-residents) has a significant impact on reducing unemployment in the country. Thus, it is recommended to focus more on innovation in the form of promoting patents to reduce unemployment and propel growth in the country.

Suggested Citation

  • Ahmad Fathi Alheet & Yacoub Hamdan, 2020. "Evaluating innovation-driven economic growth: a case of Jordan," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 1790-1802, March.
    • Handle: RePEc:ssi:jouesi:v:7:y:2020:i:3:p:1790-1802
    DOI: 10.9770/jesi.2020.7.3(23)
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    References listed on IDEAS

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    More about this item

    Keywords

    innovation; economic growth; patent applications; internet; unemployment; Jordan;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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