Impact of innovation on economic development: Cross nation comparison of Canada, South Korea and Pakistan

Abstract

The objective of this study is to examine the impact of innovation on three heterogeneous countries, Canada, South Korea, and Pakistan by using the consistent time series data from 1991-2011. The results confirmed the positive association between innovation and country’s economic growth controlling the factors of FDI inflows, R&D expenditures, high technology exports, patent applications residents, and scientific & technical journals. The study conclude that technological innovation have a substantial impact on increasing country’s economic growth, hence it is imperative to device strong policies to attract foreign investors to devote resources in a host country for development.