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Human Capital, Innovation Capability and Economic Growth

Author

Listed:
  • Aurora Teixeira

    () (CEMPRE, Faculdade de Economia da Universidade do Porto)

  • Natércia Fortuna

    () (CEMPRE, Faculdade de Economia da Universidade do Porto)

Abstract

In this paper, we study human capital effects on economic growth of Portugal from 1960 to 2001. By using VAR and cointegration analyses, we obtain 0.42 long-run estimate for human capital elasticity, 0.30 long-run estimate for internal knowledge elasticity, and 0.40 long-run estimate for the elasticity related with the composite variable that measures the interaction between human capital and innovation capability. These estimates seem to confirm that human capital and indigenous innovation efforts are enormously important to the process of Portuguese economic growth during the period 1960-2001, though the relevance of the former overpasses that involving the creation of an internal basis of R&D. In addition, the indirect effect of human capital, through innovation, emerges here as critical, showing that a reasonably higher stock of human capital is important to enable a country to reap the benefits of its innovation indigenous efforts.

Suggested Citation

  • Aurora Teixeira & Natércia Fortuna, 2003. "Human Capital, Innovation Capability and Economic Growth," FEP Working Papers 131, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:131
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    References listed on IDEAS

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    Cited by:

    1. Pedro Cosme Costa Vieira, 2005. "Multi Product Market Equilibrium with Sequential Search," FEP Working Papers 166, Universidade do Porto, Faculdade de Economia do Porto.
    2. Rui Henrique Alves, 2004. "Europe: Looking for a New Model," FEP Working Papers 154, Universidade do Porto, Faculdade de Economia do Porto.
    3. Carraro, Carlo & De Cian, Enrica & Tavoni, Massimo, 2012. "Human Capital, Innovation, and Climate Policy: An Integrated Assessment," CEPR Discussion Papers 8919, C.E.P.R. Discussion Papers.
    4. Mário Rui Silva & Hermano Rodrigues, 2004. "Competitiveness and Public-Private Partnerships: Towards a More Decentralised Policy," ERSA conference papers ersa04p299, European Regional Science Association.
    5. Mário Rui Silva & Hermano Rodrigues, 2005. "Public-Private Partnerships and the Promotion of Collective Entrepreneurship," FEP Working Papers 172, Universidade do Porto, Faculdade de Economia do Porto.
    6. Egbetokun, A & Siyanbola, W & Sanni, M & Olamade, O & Adeniyi, A & Irefin, I, 2008. "What Drives Innovation?: Inferences from an Industry-Wide Survey in Nigeria," MPRA Paper 25343, University Library of Munich, Germany, revised 2008.
    7. Peter Weingarten & Stefan Neumeier & Andrew Copus & Demetrios Psaltopoulos & Dimitris Skuras & Eudokia Balamou, 2010. "Building a Typology of European Rural Areas for the Spatial Impact Assessment of Policies (TERA-SIAP)," JRC Working Papers JRC58493, Joint Research Centre (Seville site).
    8. Sandra Silva, 2009. "On evolutionary technological change and economic growth: Lakatos as a starting point for appraisal," Journal of Evolutionary Economics, Springer, vol. 19(1), pages 111-135, February.
    9. Aurora A.C. Teixeira & Natércia Fortuna, 2006. "Human capital, trade and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," FEP Working Papers 226, Universidade do Porto, Faculdade de Economia do Porto.
    10. Ester Gomes da Silva, 2010. "Capital services estimates in Portuguese industries, 1977–2003," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 9(1), pages 35-74, April.
    11. Horst Hanusch & Lekha S. Chakraborty & Swati Khurana, 2017. "Fiscal Policy, Economic Growth and Innovation: An Empirical Analysis of G20 Countries," Economics Working Paper Archive wp_883, Levy Economics Institute.
    12. Ana Poças & Elias Soukiazis, 2013. "Explaining the interrelations between health, education and standards of living in Portugal. A simultaneous equation approach," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 9(3), pages 167-187.
    13. A Alodadi & J Benhin, 2015. "Long Term Economic Growth in Oil-Rich Saudi Arabia: What is the role for non-oil sectors?," Economic Issues Journal Articles, Economic Issues, vol. 20(1), pages 109-130, March.
    14. Pereira, João & St. Aubyn, Miguel, 2009. "What level of education matters most for growth?: Evidence from Portugal," Economics of Education Review, Elsevier, vol. 28(1), pages 67-73, February.
    15. Soogwan Doh & Connie McNeely, 2012. "A multi-dimensional perspective on social capital and economic development: an exploratory analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 821-843, December.
    16. Pina, Alvaro Manuel & St. Aubyn, Miguel, 2005. "Comparing macroeconomic returns on human and public capital: An empirical analysis of the Portuguese case (1960-2001)," Journal of Policy Modeling, Elsevier, vol. 27(5), pages 585-598, July.
    17. Corrado Andini, 2008. "Portugal and the competitive disinflation: let the data speak," Economics Bulletin, AccessEcon, vol. 6(25), pages 1-11.
    18. Andreia Cardoso & Aurora A.C. Teixeira, 2009. "Returns on R&D investment: A comprehensive survey on the magnitude and evaluation methodologies," UITT Working Papers 2009-03-wp1, INESC Porto, Unidade de Inovação e Transferência de Tecnologia(UITT).
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    20. Cristina Barbot, 2004. "Low cost carriers, secondary airports and State aid: an economic assessment of the Charleroi affair," FEP Working Papers 159, Universidade do Porto, Faculdade de Economia do Porto.
    21. Horst Hanusch & Lekha Chakraborty & Swati Khurana, 2016. "Public Expenditures, Innovation and Economic Growth: Empirical Evidence from G20 Countries," Discussion Paper Series 329, Universitaet Augsburg, Institute for Economics.
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    24. Jorge M. S. Valente, 2004. "Local and global dominance conditions for the weighted earliness scheduling problem with no idle time," FEP Working Papers 156, Universidade do Porto, Faculdade de Economia do Porto.

    More about this item

    Keywords

    human capital; innovation; economic growth;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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