The Impact of Creativity on Economic Development in Iran

Paying attention to economic development has always been one of the main concerns of science and politics, and in order to put economic development in a suitable path, its continuous recognition is essential. The recent findings and experiences of countries Show that creativity is the most important and basic factor for the growth and development of the economy. This study aims to scrutinize the effect of creativity index on the economic development of Iran for the 1990-2016 period by using generalized method of moments (GMM). The findings support the idea that economic growth and development is more dependent on creativity and innovation than on formal education. In other words, education can affect economic growth and development, only  if it results in creativity and innovation. Also the findings clarify that high-technology exports have the most effect on economic growth and patenting inventions has a positive effect on economic growth. Thus, it is suggested that by providing a creative ecosystem and supporting the rights of patenting, we will have creative and innovative system in the society so that through diversified economy which relies on knowledge, higher human resources, and modern technology will promote sustainable growth and development.