The effect of natural resource dependence on innovation: a within-country and cross-country analysis
Date
2023-01-10
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Abstract
The paper aims to examine the effect the degree of natural resource dependence in a country has on its level of innovation. The researchers used a within-country dataset
consisting of all 17 regions of the Philippines running from 2006 to 2016 and a cross- country dataset made up of 33 lower-middle income countries from 2011 to 2020 to
estimate the effect. Innovation is measured by the gross fixed capital formation in intellectual property and products (IPP) in the within-country dataset and by the Global Innovation Index score in the cross-country dataset. Other control variables were
added. The results showed mixed evidence between the cross-country and the within- country models. In the cross-country model, estimates were not significant and indicated a positive effect of natural resource dependence on innovation. The within-
country model, on the other hand, exhibited a negative, but not statistically significant relationship. The researchers also observed divergence between the expected values of some control variables with their hypothesized result.
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Keywords
innovation, natural resources, economic growth