The Role of Knowledge-Based Economy Components on the Unemployment Rate in Different Provinces of Iran

The knowledge-based economy increases the skills, efficiency, creativity and innovation of the human force and reduces unemployment in the economy by increasing employment. The purpose is to investigate the effect of the knowledge-based economy on the unemployment rate in different provinces of Iran using the panel data approach. Four main indicators of knowledge-based economy, including education and human resources index, innovation and invention index, information and communication infrastructure index, and institutional and economic regimes index, have been used. The findings show that the innovation and invention index and the education and human resources index have a negative effect on the unemployment rate in the given period in the provinces of Iran. Also, the results show that the institutional and economic regime index and the information and communication infrastructure index have no significant effect on the unemployment rate in the economic provinces of Iran. Therefore, the economic policy makers of the country, especially the Planning and Development Council of the provinces of the country, have paid special attention to the promotion of education and human resources indicators in order to reduce the unemployment rate, and to allocate the necessary support and significant budget in the sector of innovation and inventions.