Knowledge economy and economic development in the Arab region
Samia S. O. M. Nour
#2019-009
This paper aims to discuss the relationship between knowledge, knowledge
economy and economic development in the Arab region. It aims to
contribute to improve understanding and provide valuable contribution to
the increasing debate in the international literature concerning the
relationship between knowledge economy and economic development in the
Arab region. We use the descriptive and comparative approaches and
methods of analysis and use the conceptual framework and indicators
often used in the international literature to discuss the relationship
between knowledge, knowledge economy and economic development in the
Arab region. Different from previous studies in the Arab literature, we
fill the gap in the Arab literature, we present an in-depth and a more
comprehensive analysis of the relationship between knowledge economy and
economic development in the Arab region defined by income level using
recent secondary data related to knowledge economy obtained from the
Global Innovation Index Report (2018) and the World Bank (2012). Our
results support the first hypothesis concerning the considerable
variation in the promotion of knowledge economy depending on the level
of economic development across the Arab countries. Our findings verify
the second hypothesis that the relationship between knowledge economy
and economic development in the Arab region is determined by several
factors including economic development, economic incentives and
institutional regime, education and human resources, the innovation
system and Information and Communication Technology (ICT). Our results
support the third hypothesis that sound and coherent policies for the
promotion of knowledge economy through the promotion of economic
incentives and institutional regime, education and human resources, the
innovation system and Information and Communication Technology (ICT)
would contribute to accelerate achievement of inclusive growth and
sustainable development in the Arab countries. Our results in the Arab
region show positive relationship between income level and knowledge
index, knowledge economy index and knowledge economy index and most of
knowledge economy indicators including knowledge workers,
knowledge-intensive employment, knowledge absorption, knowledge and
technology outputs, knowledge impact and knowledge diffusion. Our
findings in the Arab region show positive relationship between income
level and all knowledge economy index pillars (economic incentive and
institutional regime pillar, education and human resources pillar, the
innovation system pillar, and information and communication technology
(ICT) pillar) and all factors facilitating the promotion of knowledge
economy including institutions, human capital and research, education,
tertiary education, research & development (R&D), infrastructure,
information and communication technologies (ICTs), and innovation. The
major policy implication and recommendation that the promotion of
knowledge economy depends on promotion of institutions, economic
incentive and institutional regime, education, human resources and
research (human capital, education, tertiary education, research &
development (R&D)), the innovation system (innovation input, output and
efficiency) infrastructure, and information and communication
technologies (ICTs).
Keywords: Knowledge, Knowledge economy, economic development, Arab
countries
JEL Classification: O10, O11, O30