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A cross-country empirical test of cognitive abilities and innovation nexus

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  • Azam, Sardor

Abstract

In this study we analyze the relationship between national cognitive abilities and innovational output using data from 124 countries of the world. By employing cross-country IQ scores traditionally used by psychological literature to represent national intelligence, and Economic Complexity Index as a novel measure of innovation, our study shows that there is a positive connection between them. We use a variety of tests to check the robustness of the nexus. Overall, our findings indicate that more intelligent nations export more sophisticated and diverse products to the world market and thus are more innovative. Therefore, developing countries should consider investing in human capital and related institutions if they are to boost innovative capabilities and move up the technology ladder in producing and exporting sophisticated and varied lines of products. This should bring them greater economic diversity which could be a right lever in mitigating negative external shocks.

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  • Azam, Sardor, 2017. "A cross-country empirical test of cognitive abilities and innovation nexus," MPRA Paper 76922, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76922
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    Cited by:

    1. Kjell Hausken & John F. Moxnes, 2019. "Innovation, Development and National Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1165-1188, February.
    2. Ridha Nouira & Sami Saafi, 2022. "What Drives the Relationship Between Export Upgrading and Growth? The Role of Human Capital, Institutional Quality, and Economic Development," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1944-1961, September.
    3. Albassam, Bassam A., 2019. "Building an effective knowledge management system in Saudi Arabia using the principles of good governance," Resources Policy, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    IQ; Intelligence; Economic complexity index; Innovation;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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