Investigating the effective factors on innovation and knowledge production in selected European countries to reform the policy making structure in Iran

In the model of Knowledge-Based production, knowledge and innovation are the most important factors of production; therefore, knowledge and innovation are the main keys to economic growth and development. The process of production of knowledge and innovation require groundwork making; This paper examines the effect of three factors, research and development expenditures, and education expenditures also the infrastructure of information and communication technology, on the production of knowledge and innovation. The purpose is to identify the path to realization of the knowledge-based economy in order to policy making for its realization in the Iranian economy. The extent of patents is considered as an indicator for producing knowledge and innovation. The countries under this study are 23 OECD member selected countries. For modeling, panel data method in Eviews software is used. Finding a positive and meaningful relationship between the three variables of research and development expenditure, training and technology infrastructure with the amount of patents, is the result of this research. The results of the calculations show that these three factors are very important in the process of producing knowledge and innovation, such that the lack of attention to them will actually lead the production of knowledge and innovation to the serious obstacles. Also, the comparison between the descriptive charts of the data for these three variables for Iran and the selected countries suggests that it would not be desirable in Iran.