A Study on the Role of Good Governance in Realization the Knowledge-Based Economy in Iran Using a Quadruple Helix Innovation System

This paper aims to explain the role of good governance in the realization of the knowledge-based economy within a quadruple helix innovation system (QHIS). It employs an analytical-descriptive method, while focusing on the econometric models within Eviews9 software environment. Theoretically, the paper is based on institutionalism approach. The interaction of good governance and knowledge-based economy is described after defining the concepts of QHIS. Then, the relationships between innovation (as the goal of innovation systems and knowledge-based economy) and good governance indicators are evaluated within an econometric model. To do this, good governance indicators in Iran are compared to those of the Northern Europe and South-Easter Asia as regions enjoying high scores in knowledge-based economy indicators. The findings indicate the impact of good governance on realization of the knowledge-based economy through various channels including property rights, enforcement of contracts, domestic and foreign investment, brain drain, human capital development, and research and development. Alike the conceptual part of paper, the results reveal positive and significant relationships among good governance indicators and innovation. Considering the importance of good governance in realizing a knowledge-based economy, good governance index is selected as the fourth helix in QHIS for Iran.