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The aim of the work is to identify the relationship between regional economic growth, innovation, the level of human capital development and the knowledge spillovers.The methodology is based on a quantitative assessment of the impact of knowledge spillovers and technological innovations on the economic growth of regions. Spatial econometrics tools are used as a method of modeling the relationships between these parameters. The sampling of time series was carried out using panel analysis, which allowed to take into account the individual characteristics of the regions correlating with the variables in the model inherent in each of them separately. Based on the provision on the effectiveness of economic development, depending on the accumulated and realized human capital, along withthe economic conditions ofthe region, a social filter indicator was calculated. Using this indicator allowed us to identify key factors of innovative development that contribute to the knowledge spillovers. Based on statistics on innovation in Kazakhstan for the period 1990-2018 the relationship between R&D, innovation and economic growth is assessed taking into account the specifics of human capital in the regions of Kazakhstan. The calculations, in accordance with the proposed models, confirmed the hypothesis about the positive impact of costs on the development of technological innovations on the regional economic growth rates. Accordingly, it is concluded that R&D can be borrowed and introduced by other territories and spread further in this direction along the production chain.

This article analyzes the effect of population sorting on economic growth. The analysis is performed in a two-region growth model with endogenous fertility, in which public knowledge spillovers from the more advanced core into children's human capital accumulation function in the periphery are incorporated. I show how migration affects the inter-temporal evolution of human capital in each of the regions and the economy as a whole. I also discuss how public policy interventions can help increase the per-capita human capital levels, if free uncontrolled migration leads to a reduction in human capital accumulation.

The article deals with the issue of knowledge spillovers in the European regions. For this purpose, a standard Knowledge Production Function (KPF) approach was extended by the application of spatial econometrics methods. Our analysis started from the construction of the alternative structures of the spatial weight matrices. These matrices were based on technological and institutional proximities, which represent compelling alternatives to geographic proximity regarded as a kind of all-encompassing connectivity measure. The next step in our analysis was the modeling of regional knowledge generation processes. We treated R&amp, D expenditures and human resources in science and technology as the input measures and patent applications to the European Patent Office as the output measure in our basic and extended models. The results show that the scope and direction of knowledge spillovers are sensitive to the type of knowledge (tacit vs. codified) and proximity dimension engaged. These findings contribute to the current debate in the geography of innovation and economics of knowledge literature.

In this paper, we explore the impact of a firm's workers’ replacements on innovation performance by using rich matched employer–employee panel data for the Veneto region of Italy. We take the well-known resource-based theory of the firm as our departure point, and develop a set of hypotheses which we test empirically with negative binomial regressions. We find that workers’ replacements significantly dampen innovation performance, coherently with the idea that they generate losses in the tacit knowledge base of the firm. We also find that workers’ replacements are especially detrimental to large and young firms, possibly because large companies benefit comparatively less from ‘diaspora’ effects and because innovative capabilities in young firms are mostly dependent on specific human capital. Finally, our results show that firms’ location in industrial districts significantly mitigates the negative impact of workers’ replacements, and that a similar picture emerges when firms are more exposed to knowledge spillovers, particularly of related knowledge.

University Spin-Offs (USOs) are actively involved in the knowledge spillover process and fully integrated in the regional innovation systems. Drawing on the Knowledge Spillover Theory of Entrepreneurship and using a multilevel approach of analysis, we explore whether the region’s knowledge spillover and the firm’s absorptive capacity jointly determine the innovative performance of USOs. At regional level, technological spillovers, production spillovers, and human capital spillovers have been considered. The results from a cross-national panel sample of 401 and 711 Spanish and Italian USOs, over the period 2005–13 and located in twenty-two administrative regions, show that only the production spillovers have a significant positive effect on the USO’s innovative activity. Firm-specific characteristics are important for explaining USOs’ innovation. More specifically, firm age has a negative effect, while firm size seems to have a positive effect. Additionally, USOs active in high-tech sectors seem to perform better in their innovation activity.

In this article, we test whether economic growth depends on human capital development mainly operating through an upgrading of human capital stock in the area where the universities are located. We specify a growth model where a qualitative measure of human capital development, university efficiency, is considered in conjunction with a customary quantitative measure of human capital development, number of graduates. The model is estimated on panel data over the period 2003 to 2011. The evidence suggests that both indicators of human capital development have a positive and significant impact on gross domestic product per capita. Results also show that knowledge spillovers occur between areas through the geographical proximity to the efficient universities, suggesting that the geography of production is affected. Results hold when robustness checks are performed.

Although early human capital theory recognized the relevance of workers’ experience, its focus was on education and formal training. Recent studies find that much of the performance of newly hired workers is driven by learning by doing or learning from peers or supervisors in the workplace. Descriptive data show that workers learn a lot from the various tasks they perform on the job. Informal learning at work seems to be relevant for all age groups, although it drives more of the performance of younger workers. Informal learning is far more important for workers’ human capital development than formal training courses.

The recent emergence of a persistent deficit in Indonesia s trade balance has triggered concerns over reliance on imports. Notably, imports of intermediate inputs and capital goods have been on the rise over the last decade. Apart from firms partaking in the emergence of global production networks, firms imported intermediates for various reasons, including value, variety, and quality. Concerns may arise about the impact that an increase in reliance on imported inputs may have on domestic jobs, and value added. A careful examination of sector and firm level data from the Indonesian manufacturing sector reveals that: (1) the growth of intermediates imports roughly matches the growth of Indonesian GDP, implying a relatively stable reliance on imported inputs. (2) Users of imported inputs in Indonesia are exceptional performers: they grow faster in terms of output, value added and employment, they are more productive, and they pay higher wages. (3) The increased availability of imported inputs has contributed to improved product quality in Indonesian manufacturing. Larger shares of imported inputs in total inputs, as well as lower tariffs on inputs, are associated with a higher probability of producing high quality goods. (4) Firms product diversification processes have been boosted by lower tariffs on inputs, and by increased usage of imported versions. In light of these results, this note argues that facilitating the import of intermediate products can help the Indonesian economy to diversify, avoid being stuck in low-skilled processing or around natural resource based manufacturing, and to climb up the value chain. Such an approach, however, is not sufficient in isolation and active policies are needed to increase firms absorptive capacities and workers skills.

The paper extends the findings of Coe and Helpman (1995) model of R&D spillovers by considering foreign direct investment (FDI) as a channel for knowl- edge spillovers in addition to imports. Deeper insights on the issue are provided by examining inter-relationship between knowledge spillovers from imports and inward FDI. Moreover, human capital is added to the discussion as one of the appropri- ability conditions for knowledge spillovers. However, in comparison to most studies that rely on physical, monetary or indicator-based measures of human capital, the current study proposes a quality-based indicator of human capital that allows for better comparison of human capital stock across countries. Quality adjusted hu- man capital is derived by weighting human capital data based on average years of schooling using journal publications in science and technology and patent ap- plications. Using cointegration estimation method on 20 European countries from 1995 to 2010, the direct effects of FDI-related as well as import-related spillovers on domestic productivity are confirmed. Furthermore, a strong complementary rela- tionship is found between knowledge spillovers through the channels of imports and inward FDI implying strong joint effect on domestic productivity. When consider- ing quality-adjusted human capital, countries with better human capital are found to benefit not only from direct productivity effects, but also from absorption and transmission of international knowledge spillovers through imports and inward FDI. Finally, technological distance with the frontier does not appear to play a role in the absorption of knowledge spillovers.

This paper enters the debate on the islands of innovation through the lens of the standard Lucas (1988) growth model. It begins with a review of the theoretical details of the model and of the ensuing main empirical results, which can be identified when estimating such model on a sample of 261 EU27 NUTS2 regions. Next, empirical results are interpreted in the light of recent EU innovation and education policies. Our results point to the paramount importance of taking into account patterns of connectivity between “islands” of innovation and other regions. On the basis of our empirical estimates, we claim that future further concentration of innovative activity could achieve maximum returns by enhancing connectivity between spatial innovation leaders and lagging regions. This situation may be characterised as targeting “hubs”, rather than “islands”, of innovation, and is in agreement with “open innovation policy”.

The paper addresses the link between productivity and labour mobility. The hypothesis tested is that technology is transmitted across industries through the movement of skilled workers embodying human capital. The embodied knowledge is then diffused within the new environment creating spillovers and leading to productivity improvements. The empirical analysis is based on household survey and industry-level data for a sample of 12 EU countries covering the years 1995-2005. The estimates document the importance of positive cross-sectoral knowledge spillovers and indicate that labour mobility has considerable beneficial effects on industry productivity. Possible endogeneity problems related to labour mobility are tackled by employing a two stage instrumental variables approach. Moreover we show that the spillover effects vary considerably by technology level of the giving industry. While workers moving away from high and medium-tech industries are found to produce positive productivity effects for the receiving industry, no effect is found for those coming from low-tech industries.

The Central America region is a small market. The region contains around 43 million inhabitants (0.6 percent of total world population) who generate around 0.25 percent of the world's Gross Domestic Product (GDP). While the region has successfully embarked on a regional integration agenda and has strong commercial links with the US, extra-regional trade-mainly with large fast-growing emerging economies-remains a challenge. Export performance is analyzed along three dimensions that, together, give a fairly comprehensive picture of competitiveness: 1) the composition, orientation and growth of the export basket; 2) the degree of export diversification across products and markets; and 3) the level of sophistication and quality of their main exports. This analysis allows exports dynamics at the different margins of trade (intensive, extensive, and quality) to be evaluated and individual countries' to be benchmarked with peers in the Central American region. The results of this report allow policy makers to identify key areas to explore in the overall discussion of export competitiveness in the Central American region. This paper relates to the literature on challenges and opportunities that trade liberalization can bring to the Central American region. Much of the recent literature focuses on the role of the free trade agreement negotiated by Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua, with the US.

Knowledge triggers regional growth. Evidence suggests that skilled labour force concentrates in islands of innovation, determining an advantage for innovative regions and a challenge for lagging ones. We address the role of knowledge in shaping effective markets for skilled labour. Estimates are based on the Lucas (1988) model, with EVS and EUROSTAT data. The externality driving growth in the model is cognitive capital. Empirical tests show that a higher endowment of cognitive capital generates increasing returns to knowledge, favouring the emergence of islands of innovation; regions with a high endowment of cognitive capital attract knowledge spillovers from neighbours.

We estimate a model of urban productivity in which the agglomeration effect of density is enhanced by a metropolitan area’s stock of human capital. Estimation accounts for potential biases due to the endogeneity of density and industrial composition effects. Using new information on output per worker for U.S. metropolitan areas along with a measure of density that accounts for the spatial distribution of population, we find that a doubling of density increases productivity by 2 to 4 percent. Consistent with theories of learning and knowledge spillovers in cities, we demonstrate that the elasticity of average labor productivity with respect to density increases with human capital. Metropolitan areas with a human capital stock one standard deviation below the mean realize no productivity gain, while doubling density in metropolitan areas with a human capital stock one Standard deviation above the mean yields productivity benefits that are about twice the average.

This paper investigates the possible opportunities for Higher Education in Pakistan towards gaining a competitive advantage in the international community, the link between Human capital development and GDP growth in Pakistan and finally compares the HE policies in Pakistan and the EU. We look at empirical evidence and statistical data to investigate how endogenous growth affects the GDP per capita with the case study of Pakistan. The empirical studies show that employing human capital variable in the endogenous production function does not have favorable results on the economic growth output. This leads us to believe that the measuring criterion for Human Capital has to be re-evaluated as there are several factors that affect the educational systems in different parts of the world See Barro (2001), Qaisar (2007) and De la Fuente and Doménech (2002). Hence the definition of Human Capital can vary from region to region in order to get accurate results from the endogenous production function. We performed Pearsons Correlation function on 7 years data of GDP growth, GDP per capita GDP PPP compared with various variables including higher education enrollment rates and labor force in Pakistan. The results show little or no correlation is all experiments which further validate empirical research by Qaisar Abbas. These results are confirming the theory that the Higher Education growth cannot be simply measured in terms of enrollment rates and other variables must be included in the equation. These variables can vary from country to country and a multi ethnic country like Pakistan, measuring these variables is a complex task due to heterogeneous environments. Empirical evidence states that there is a link between human capital and spatial heterogeneity in Pakistan. Unequal opportunities are defeating the advantages of existing supplies of Human Capital. Minimization of educational inequalities enables the poor to receive more benefits of economic growth and that in turn allows the increase in growth rates for the country. A public survey was conducted to investigate general public’s awareness and attitude towards acceptance of Higher Education as a key towards quality of Life and opportunities in Higher Education for a common man in Pakistan. Overall 280 respondents from across Pakistan were engaged. Public survey results show that there is a strong sense of awareness in the general public about higher education being the Key for economic revival in Pakistan. Despite being motivated for educational growth there are various elements that are unattractive for public to pursue a higher degree in Pakistan. We take of look at the survey response towards acceptance of a Pakistani degree against a foreign degree and find that education institutions of Pakistan are majorly unattractive for our prospective future Human Capital supplies. In light of these findings and research studies, we identify a few areas in which the education institutes can impact their internal and external environments to meet the challenges posed in front of them. In the second leg of this dissertation, we perform an analytical review of the background and present status of EU Higher Education policies in contrast to Pakistani Higher Education policies. This dissertation reveals a sharp contrast between the history, plans and implementation of HE Policies in the EU and Pakistan. In the EU, dynamic policy making in the light of the intergovernmental Bologna Process and the Lisbon Strategy is evident how HE has evolved in the EU and provided a roadmap to Lisbon/Bologna declarations [2]. In Pakistan, we can only witness some enthusiastic plans, but lack of implementation force backed with unrealistic economic forecasts which ultimately played a major role in policy failure [3][4]. A detailed analysis and comparison is performed between EU and Pakistan in order to identify benchmarks for Pakistan. We find there are a need of exchange programs at all levels in Pakistan in order to establish a knowledge based community which in turn can be expanded in collaboration wi th other communities and possibly with EU in the form of Bologna process. In the end of the dissertation we conclude that the existing theory of human capital growth has strong relevance in the field of higher education as indicated by our experiments and empirical evidence from Qaisar, Jamal and Hasan. The survey results support the fact that there economic growth is deeply severed due to insufficient supplies of Human capital, the studies and survey results support that fact that un-equal opportunities and lack of financial aid for students is defeating our cause to utilize our demographic dividend or working age group of Human Capital before we enter 2050 and become one of biggest populated nations in the world. Empirical studies tell us that at least 40% of development in East Asian countries can be attributed towards their Human Capital (Demographic dividend)[1]. Pakistan has to capitalize on her Human Capital stock in order to translate this opportunity of a demographic dividend into global economic power. We briefly look into the spatial heterogeneity aspect of human capital growth and knowledge spillovers as possible solution to minimize the silos culture within regions. This dissertation is a non-technical review of Endogenous Growth theories, its application across the countries and in Pakistan. We conclude this dissertation by suggesting some changes in the internal and external environments of higher education institutes and higher education policy re-evaluation in Pakistan. We have identified certain areas of improvement which the Government of Pakistan should consider. Dedicated to the Hard Working Nation of Pakistan!

We investigate whether the degree production and research and development (R&D) activities of colleges and universities are related to the amount and types of human capital present in the metropolitan areas where the institutions are located. We find that degree production has only a small positive relationship with local stocks of human capital, suggesting that migration plays an important role in the geographic distribution of human capital. Moreover, we show that spillovers from academic R&D activities tilt the structure of local labor markets toward occupations requiring innovation and technical training. These findings demonstrate that colleges and universities raise local human capital levels by increasing both the supply of and demand for skill.

Motivated by differences in new-firm survival across regions, this paper explores the impact of regional human capital on new-firm survival rates. New-firm survival is interpreted through formation rates of surviving versus closed firms in the service sector. By incorporating knowledge spillovers through a geographical variation model for Labor Market Areas, we empirically test the relationship between regional human capital stocks and new-firm survival. The expected positive relationship between regional human capital and new-firm survival is supported for the period 1993-1995, but is not as strong for the recession period 1990-1992. Controlling for human capital, the new-firm survival rate is negatively related to service sector specialization and positively related to all industry intensity, suggesting that city size and diversity may be an important determinant of new-firm survival in both periods.

Although human capital externalities are a key variable in theories of economic growth, there has been little investigation of the mechanism by which these externalities are realized. We examine the relationship between the local levels of human capital and firm formation rates and find that formation rates differ with the share of adults with college degrees, especially for industries that normally require college-educated founders. They also differ strongly with the local concentration of existing establishments in the same sector, especially for industries serving non-local markets, suggesting that an important mechanism is the spillover of relevant knowledge.

Public R&D subsidies aim to target particularly risky R&D and R&D with large externalities. One would expect many such projects to fail from a commercial point of view, but they may still produce knowledge with social value. Such knowledge is likely to be embodied in workers or teams of workers. I utilize a large matched employer-employee data set and test for knowledge diffusion from subsidised technology firms transmitted through the labor market. The specific case analysed is a series of Norwegian IT-programs so far considered unsuccessful, but which have been linked to the rise of a new generation of successful IT-firms. It has been argued that know-how and networks built up in leading companies during the programs still `fertilize' the IT-industry even though many of the companies have exited. I find limited support for this claim. On the positive side, the market value of work experience from subsidized firms does not seem to have been reduced by the fact that the firms did not succeed commercially, but workers from subsidized firms have not outperformed similar workers without this experience, either. Furthermore, firms that are spin-offs from formerly subsidized firms seem to perform below, rather than above average. Keywords: R&D-subsidies, Knowledge spillovers, Human capital, Labor mobility, Displaced workers, Spin-off firms, IT-industry, Program evaluation, Matched employer-employee data

Most R&D projects fail from a commercial point of view, and technological shifts may quickly turn even successful innovations into failure. It is, however, possible that projects which fail commercially produce knowledge with some social value. Such knowledge is likely to be embodied in workers or teams of workers, and in order to evaluate the social returns to research, it is desirable to trace workers as they move across firms and industries. In this paper I utilize a large matched employer-employee data set and test for the existence of potential knowledge spillovers transmitted through the labor market. The specific case analysed is a series of Norwegian IT-programs so far considered unsuccessful, but which recently have been linked to the rise of a new generation of successful IT-firms. It has been argued that know-how and networks built up in leading companies during the programs still 'fertilize' the Norwegian IT-industry. I find little support for this claim. Workers with experience from companies that received R&D subsidies were largely re-employed in IT-industries, but they have not outperformed similar workers without such experience. An analysis of firms that are spin-offs from formerly subsidized IT-firms reveals that they perform below, rather than above average.