Innovation, total factor productivity and economic growth in Pakistan: a policy perspective

Abstract

Recent economic growth theories draw devotion toward endogenous technological change, which describes the growth patterns of world economies. Romer (1986) established an endogenous growth model in which technological innovation was formed in the research and development (R&D) areas including human capital and the existing knowledge stock. Then, it was used in the production of all final goods and led to permanent rises in the output growth rate.Innovation is a significant factor of economic growth in the mind of various experts especially the policy makers. Moreover, innovation is not directly related to the amount of productive resources; therefore, it affects growth of the economy mostly through TFP. Technological innovation and non-technological factors are two main divisions of innovation, where new production and services are related to the technological innovation and non-technological innovations in the form of organizational or marketing modifications. However, growth level in itself can be attained by putting more inputs for process of production and through attaining higher levels of output with the same quantity of

Analysis of the Dynamics of Structural Processes in the Context of Ensuring Sustainable Development

“…Structural changes should take place in the direction of reorienting the economy from the existing industrial and technological structure to the post-industrial one, in which the latest technologies and knowledge should be priority and determining factors of economic growth (Herrendorf, Rogerson, & Valentinyi, 2014). Saleem et al, (2019) and Popadynets et al, (2020) emphasize that it is the structural transformation of the economy that serves as the basis for achieving a new quality of economic growth in terms of an innovative development model associated with the rapid development of the information and communication environment, scientific knowledge, and the introduction of advanced technologies (Saleem et al, 2019). The patterns between economic growth and structural changes in the economy have been studied by Yadav & Joseph, (2018).…”

The impact of technological advancement on total factor productivity of cotton: a comparative analysis between Pakistan and India

“…The index is a weighted sum of all input and output indices, the input-output included land, labor, capital stalk, chemical fertilizer conventional agricultural inputs, and the index generally includes land, labor, and physical and human capital. Many of the studies have been conducted in Pakistan, India, and other regions of the world in which total factor productivity index has been used to get the true level of productivity of the agriculture sector by employing various approaches like Wizarat (1981), used arithmetic index approach to get TFPc results using data from 1953 to 1979, rose Rosegrant and Evenson (1993), Saleem et al (2019), Sarel and Robinson (1997) Cornejo and Shumway (1997), Shabbir (2015Shabbir ( , 2016, Antle and Capalbo (1988), Jin et al (2002), Ali and Byerlee (2000), Coelli and Rao (2003), Mukherjee and Kuroda (2003), Ali (2004), and used Tornqvist-Theil Index approach, to get TFPC results. However, Wizarat (1981)'s study has many shortcomings such as non-availability of data, and perfect substitutability between inputs which make her analysis incomplete.…”

Leveraging industrial-technological innovation to achieve sustainable development: A systems thinking perspective

“…Moreover, constructing an innovation diffusion mechanism also requires a lot of resources. ITI is also impacted by economic structures [ 18 ], industrial transfer [ 19 ], political relationships [ 20 ], and market demand or other aspects [ 21 ], and the combination of all these factors means that ITI systems are inherently complex.…”