Cognitive Skills, Innovation and Technology Diffusion
Economic Modelling, 30, 565-578
Posted: 5 Jan 2017
Date Written: June 22, 2012
Abstract
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.
Keywords: Education, Research skills, Human capital, Growth, Innovation, Diffusion
JEL Classification: K2, O1, O3, O4
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