The effect of innovation on economic growth in the BRICS countries using Panel Data estimation

Abstract

The aim of the study is to find out how innovation affects economic growth in the BRICS countries. The World Bank 2021 World Development Indicators database, covering the period from 2000 to 2019, was used to collect data. There are three ways to quantify innovation: research and development, patents, and trademarks. This study looked at how the GDP of the BRICS countries responds to the hit from research and development, patents, and trademarks. Stationarity tests are conducted using panel unit-roots. For the study, the authors used both multiple regression for each country and panel data regression estimates for the BRICS countries. The authors suggest several compelling factors for BRICS economies to examine the development of innovation, especially in research and development, patents, and trademarks, as a potential opportunity to accelerate economic growth. Furthermore, the authors found that the overall impact of research and development, patents, and trademarks on economic growth is significant and growing rapidly among the BRICS economies, demonstrating that innovation contributes significantly to economic growth. The results of this study show that research and development, patents, and trademarks are important drivers of innovation and, therefore, GDP growth in the BRICS region.