Knowledge Development and Economic Performance In Iran

Development based on knowledge is in fact a change of perspective and thinking about development. The most important feature of economy based knowledge is the ability to earn income from knowledge-oriented economics. Countries which fix the way of their earning accordingly will certainly gain economic faster growth and higher economic capacities. In this paper we pay close attention to the indexes of knowledge production and the development of wisdom. We also consider some related indexes of this issue. Finally, we examine the influence of related variables on the variables of economic growth in Iran as index of economic performance. By applying the econometric method of ARDL, a long run and a short run model was estimated. The results show that budget and credits allocated to the research sector in the country have significant effect on the growth of internal gross product (without oil) in the period investigated.