The modern drivers of productivity

Achieving sustainable economic development is one of humanity’s greatest challenges, and, in this regard, the United Nations has promoted a line of research based on sustainable economic development. In view of this, our study focused on the sustainable economic development of nations, specifically, development through the deployment of information and communication technologies (ICTs). Academic researchers recognize the importance of ICT for economic and sustainable development, but there is controversy in the literature regarding two opposing points of view. First, there is a view that advances in ICT support Gross Domestic Product (GDP) growth, while, on the other hand, the view is that there is no relationship between these two factors. In view of this, we conducted a study where the objective was to determine whether investing in ICT contributes to sustainable economic development (measured by the GDP per capita) of European Union countries. We used Eurostat data and applied the partial least-squares (PLS) method to address the study. This approach allowed us to analyze European Union countries from 2014 to 2017, using fairly rigorous data. The most outstanding result was that ICT accounted for most of the explained variance in GDP per capita (GDPpp), and, specifically, the most representative indicator was “digital public services.” Therefore, we concluded that investing in the deployment of ICT supports the sustainable economic development of European Union countries. These countries should focus on investing in improved connectivity in areas with poor communications, as well as in training area inhabitants in the use and development of ICT to obtain greater development using these tools and technologies.

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“…Within this framework, researchers have linked ICT and economic growth, mainly based on the Exogenous Theory [19][20][21]60].…”

Section: Growth Theories and Ictmentioning

confidence: 99%

“…If we focus on the GDP per capita, we must comment that the existing literature has identified a link between the GDPpp and ICT [15][16][17]. As a result, the effect of deploying ICT provides support for the economic development of nations [18,19], and some specific authors indicate that investments in ICT boost productivity [20,21].…”

Section: Introductionmentioning

confidence: 99%

Is Sustainable Economic Development Possible Thanks to the Deployment of ICT?

et al. 2019

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“…It also investigates why this relationship varies across countries because of domestic socio-political conditions. Reference [44] shows the role of technology spillovers in productivity growth of Organization for Economic Co-operation and Development (OECD) countries by analyzing the investments in Information and Communication Technology (ICT) and Research & Development (R&D). Reference [45] provides a systematic synthesis of the literature using 1253 estimates from 65 research studies.…”

Section: Discussionmentioning

confidence: 99%

The Spatial Spillover Effect in Hi-Tech Industries: Empirical Evidence from China

Chen

Shi

et al. 2020

Sustainability

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With ever-increasing economic globalization and rapid advancement of science and technology, developing high-tech industries have become an important way for many countries to achieve sustainable and environmentally friendly economic development. In this article, we aim to empirically test the critical factors, which can influence the spatial spillover of a country's high-tech industries. Using data from the high-tech industries in China during the years of 2007-2016, we establish a space lag model and a space error model to examine the space fixed effect, the time fixed effect, and the space-time double mixed effect in spatial spillover in high-tech industries. We compare the results of these two spatial panel models with those from a general panel model and find that the spatial spillover effect within high-tech industries is rather significant. Moreover, we find that the spatial-time double mixed of the spatial lag model is the best fitting effect. Our empirical results also show that the research and development (R&D) investment and international trade can positively promote spatial spillover of high-tech industries among different regions. In terms of policy insights, our results imply that the government can establish a technology transfer platform to promote the spillover in high-tech industries. This can help achieve a sustainable and balanced development of high-tech industries.Sustainability 2020, 12, 1551 2 of 16 agglomeration effects in the high-tech enterprises. In this paper, we focus on the following important questions: what are the critical factors which can influence the spatial spillover of high-tech industries? How do these factors influence the spatial spillover? What are the potential reasons for the unbalanced regional development of high-tech industries? The answers to these questions are of great theoretical and practical significance because they can help improve the output of the high-tech industries and promote the sustainable and balanced development of regional economies for many countries. For example, China is a vast country with regions with unbalanced economic development. The high-tech industries are highly concentrated in only several developed regions like Guangdong Province. How do you achieve the spillover of high-tech industries to other underdeveloped regions? This question is important not only for China's economic development, but also for many countries in the world with unbalanced regional economic development.In this paper, we employ spatial panel models to study spatial spillover in high-tech industries. We adopt the spatial panel models because they can deal with the spatial dependence among regions. In contrast, traditional models such as Ordinary Least Squares (OLS) models ignore the spatial effect and lead to estimation errors. To be more specific, in this research, we employ the spatial lag model (SLM) and the spatial error model (SEM), which are two of the most widely used spatial panel models. The SEM focuses on the influence of the error of random interferenc...

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“…The S3 concept has been described in a series of policy documents (‘Knowledge economists policy briefs’), initially, attributing to an insufficient endowment with ICTs the main reason for the EU gap (Foray et al . ; Venturini ). As a consequence, S3 has initially mainly focused on R&D functions.…”

Section: A Smart Policies’ Overview: S3 and Scmentioning

confidence: 99%

Much Ado About Something? An Appraisal of the Relationship Between Smart City and Smart Specialisation Policies

Caragliu

2017

Tijd voor Econ & Soc Geog

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Smart policies at the urban (smart city initiatives) and the regional (smart specialisation Strategies, S3) level, both fostered by the need to better spend the reduced budget available for EU policy-making, have recently gained much attention. While some attempts have been made to explore the growth potential of the two policies separately, no empirical analysis has considered their joint contribution to regional growth. This paper identifies two types of development (measured as 2008--2010 GDP growth) effects associated to smart policies: one, short-run, associated to urban smartness initiatives, and a second, long run, linked to S3. Instrumental variables estimates are used to support the conceptual framework suggested for the link between these two types of policies, which are both found to have a positive impact on regional economic performance.

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The modern drivers of productivity

Cited by 92 publications

References 70 publications

Is Sustainable Economic Development Possible Thanks to the Deployment of ICT?

Is Sustainable Economic Development Possible Thanks to the Deployment of ICT?

The Spatial Spillover Effect in Hi-Tech Industries: Empirical Evidence from China

Much Ado About Something? An Appraisal of the Relationship Between Smart City and Smart Specialisation Policies

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