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The effect of ICT development on innovation: evidence from G-20 countries

Author

Listed:
  • Rudra P. Pradhan

    (National Informatics Centre)

  • Ajoy K. Sarangi

    (National Informatics Centre
    Indian Institute of Technology)

  • Ashim Sabat

    (Steel Authority of India Limited (SAIL))

Abstract

We study the interactions between information and communication technology (ICT) development and innovation in G-20 countries over 1961–2019. We establish whether there is temporal causality between these two variables. Employing the vector error correction modelling (VECM) framework, our findings render a grid of short-run and long-run causal relationships between ICT development and innovation, including long-run unidirectional causality from innovation to ICT development.

Suggested Citation

  • Rudra P. Pradhan & Ajoy K. Sarangi & Ashim Sabat, 2022. "The effect of ICT development on innovation: evidence from G-20 countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 361-371, June.
    • Handle: RePEc:spr:eurase:v:12:y:2022:i:2:d:10.1007_s40822-021-00189-y
    DOI: 10.1007/s40822-021-00189-y
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    References listed on IDEAS

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    1. Margarita Billon & Rocio Marco & Fernando Lera-Lopez, 2017. "Innovation and ICT use in the EU: an analysis of regional drivers," Empirical Economics, Springer, vol. 53(3), pages 1083-1108, November.
    2. Mokyr, Joel, 2010. "The Contribution of Economic History to the Study of Innovation and Technical Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 11-50, Elsevier.
    3. Teimuraz Gogokhia & George Berulava, 2021. "Business environment reforms, innovation and firm productivity in transition economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 221-245, June.
    4. Eric J. Bartelsman & Martin Falk & Eva Hagsten & Michael Polder, 2019. "Productivity, technological innovations and broadband connectivity: firm-level evidence for ten European countries," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(1), pages 25-48, March.
    5. Nair, Mahendhiran & Pradhan, Rudra P. & Arvin, Mak B., 2020. "Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries," Technology in Society, Elsevier, vol. 62(C).
    6. Pradhan, Rudra P. & Arvin, Mak B. & Bahmani, Sahar & Bennett, Sara E., 2017. "The innovation- growth link in OECD countries: Could other macroeconomic variables matter?," Technology in Society, Elsevier, vol. 51(C), pages 113-123.
    7. Rudra P. Pradhan & Mak B. Arvin & Mahendhiran Nair & Sara E. Bennett, 2020. "Sustainable economic growth in the European Union: The role of ICT, venture capital, and innovation," Review of Financial Economics, John Wiley & Sons, vol. 38(1), pages 34-62, January.
    8. Ronia Hawash & Guenter Lang, 2020. "Does the digital gap matter? Estimating the impact of ICT on productivity in developing countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 189-209, June.
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    Cited by:

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    More about this item

    Keywords

    ICT development; Innovation; G-20 countries;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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