Assessing the role of innovation and intellectual property in the realization of knowledge-based economy: A case study of information and communication technology industry

The aim of this study was to investigate the impact of innovation and intellectual property on knowledge-based economy in the information and communication technology industry using data panel method. This was a causal study involving quarterly data from 2009 to 2018. In this study, the impact of innovation and intellectual property rights on the development of ICT industry in eleven countries from the Middle East that are structurally similar to Iran was examined. These included the UAE, Jordan, Bahrain, Turkey, Saudi Arabia, Oman, Qatar, Kuwait, Lebanon, and Egypt. The results confirmed the positive and significant impact of innovation and intellectual property on the knowledge-based economy (growth of information and communication technology industry). These results are in accordance with the research hypotheses. Also, the results of this research that were extracted and analyzed based on endogenous growth model show that innovation and intellectual property have a positive and effective role in the formation and realization of knowledge-based economy. Therefore, economic policymakers should take steps to strengthen creativity and encourage human resources to promote and develop inventions, and by enacting relevant laws and regulations to increase intellectual property rights for the benefit of inventors. This will lead to mutual growth of two factors: Innovation and intellectual property.