Future research on enhancing labor productivity within the framework of a knowledge-based economy across the expanse of Iran

The primary objective of this research is to enhance labor productivity across the Iranian territory through the components of a knowledge-based economy. In a knowledge-based economy, the production, distribution, and utilization of knowledge are the main drivers of economic growth, wealth, and employment at all organizational levels. Knowledge leads to improved productivity, increased production, and sustainable economic growth. This study examines the impact of four components categorized as composite components of a knowledge-based economy, along with explanatory variables such as Gross Domestic Product, government expenditures, and inflation, on improving labor productivity in 31 provinces of Iran. To achieve the research goals, the panel data econometrics method (Fully Modified Least Squares) and version 12 of the EViews software were used. To examine the dynamics and stationarity of the variables, the unit root and Kao tests were employed. For the significance level, the fixed and random effects model was tested using the F-Limer and Hausman tests. With a 95% confidence level, it was confirmed that the model was panel data-based and had fixed effects. The results of this study indicate that the composite components of the knowledge-based economy have a positive and significant impact on labor productivity in the provinces of Iran. Moreover, the variables of Gross Domestic Product and government expenditures also have a positive and significant impact on labor productivity, while a negative and significant relationship exists between inflation and labor productivity. We conclude that enhancing labor productivity across the Iranian territory is influenced by the composite components of the knowledge-based economy. Therefore, economic policymakers aiming to improve labor productivity in the provinces of Iran should prioritize the development of science and technology parks, expansion of growth and entrepreneurship centers, human resource skills development, technological infrastructure development, and the promotion of training and research programs.