A cross-country empirical test of cognitive abilities and innovation nexus. (March 2017)

• Record Type: Journal Article
• Authors: Azam, Sardor
• Is Part Of: International journal of educational development. Volume 53(2017)
• Page Start: 128
• Page End: 136
• Publication Date: 2017-03
• Subjects: IQ -- Intelligence -- Economic complexity index -- Innovation; Education -- Periodicals; Education -- Social aspects -- Periodicals; Education -- Economic aspects -- Periodicals; Education -- Periodicals; Éducation -- Périodiques; Education; Periodicals; 370.11
• DOI: 10.1016/j.ijedudev.2017.01.003
• Languages: English
• ISSNs: 0738-0593

Abstract

Highlights: In this paper we check whether nations' intelligence is associated with their innovational activity. We find that intelligence is an important antecedent of innovation. Results suggest that developing countries should consider investing in human capital if they are to boost innovative capabilities. This should bring them greater economic diversity which could be a right lever in mitigating negative external shocks. A number of robustness tests show that our results remain intact. Abstract: In this study we analyze the relationship between national cognitive abilities and innovational output using data from 124 countries of the world. By employing cross-country IQ scores traditionally used by psychological literature to represent national intelligence, and Economic Complexity Index as a novel measure of innovation, our study shows that there is a positive connection between them. We use a variety of tests to check the robustness of the nexus. Overall, our findings indicate that more intelligent nations export more sophisticated and diverse products to the world market and thus are more innovative. Therefore, developing countries should consider investing in human capital and related institutions if they are to boost innovative capabilities and move up the technology ladder in producing and exporting sophisticated and varied lines of products. This should bring them greater economic diversity which could be a right lever in mitigating negative external shocks.