Investigating the Innovation Effect on Total Factor Productivity Promotion: A Case Study Selected Developing Countries With Medium Income

The genesis of innovation، the revolution in the conception of knowledge and improvement of related activities have established a new stage of development. This fundamental change in the economy leads to a tremendous change in the nature of activities and competition inside the country as well as other countries. In recent years، with the rise of knowledge based economy، innovation has played an important role in the economy. For this reason، developed economies are often so-called “innovation based economies”. This article studies the innovation effect on the growth of total factor productivity using panel data for 16 developing countries for years spanning 1996 to 2007. In this study، variables such as amount of recorded patents in one million populations، research and development expenditure (% gross domestic production) and amount of researchers in one million populations have been used as proxy measures of innovation? combined student registration rate is a proxy for human capital. The results indicate that the variables have positive and significant effects on total factor production.