Year: 2025
Type: article
Abstract: There is indeed a consensus in the literature that innovations play a crucial role in defining the growth outcomes of economies globally. However, the impact of patent applications (as a proxy for innovation) on growth in African countries remains anecdotal. We, therefore, examined whether patent applications mattered in explaining growth in South Africa using time series data for the period 1990–2021 and a Vector Error Correction Model. Our primary findings revealed that patents significantly propelled growth both in the short-run and long run. Secondly, we uncovered a unidirectional causation between the two variables running from patents to growth, further asserting that our evidence is prima facie at least in the context of developing economies. These findings highlight that patenting can be a prime avenue for the sustained growth of developing countries that are still striving for a suitable engine of innovation-based growth, hence stressing the need for human capital advancement.
Source: Innovation and Development
Author: Cyprian Amutabi
Institution: University of Cape Town
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4415366019