The Relation between Knowledge Economy Index and GDP Growth in Iran’s Economy

The increasing importance of knowledge in economies has led to the knowledge-based economy. In fact, in this type of economy, the accumulation of science and knowledge from research and development has led to an increase in the rate of return on research and development projects and plays a significant role in creating wealth for a country. Accordingly, the main purpose of this paper is to evaluate the relationship between knowledge Economy Index (KEI) and Gross Domestic production (GDP) for Iran’s Economy over the past 20 years. Therefore, the relation between knowledge Economy Index and GDP growth in 1996 to 2017 in Iran’s economy through The Johansen test has been investigated. Results confirm a long-run relation between KEI and GDP growth during the studied period. Considering the significant contribution of knowledge-based economy to GDP growth, it seems it is necessary to pay attention to constructive variables of the s knowledge Economy and the production of knowledge-based products for Iran’s economy. Regarding this result, policymaking for promoting knowledge-based economy should be concerned.