An Analysis of Density and Effect of Population on Regional Technological Changes in Iran

One of the factors influencing technological changes in the regions is population and population density. More population has more innovators and leads to higher population density given that the size of the earth is fixed; and this population density facilitates communications and exchanges, increases the size of markets and the possibility of their specialization and leads to more demands for innovations. All these factors encourage the creation and distribution of new technologies. Therefore, both population and population density reinforces the development of technology.The present paper seeks to analyze the effect of population and population density variables on technological changes in the provinces of Iran, is which the framework of Nachtmann and Clausen's Model is used. The model of econometrics is designed according to Nachtmann and Clausen's Model, which is estimated for 28 provinces of Iran during the period of 1380 to 1388 (2001-2009) using the method of dynamic panel data. The results obtained from the estimation of the model of econometrics indicate population and population density has a positive effect on technological changes in the provinces of Iran.