Measuring the Knowledge-Based Capital in Iran’s Manufacturing Industries

Abstract

Regarding the importance of knowledge-based capital in the modern economy, this paper aims to measure this kind of capital in Iran’s manufacturing sector using the exploratory factor analysis method. Data include active firms in Iran’s manufacturing sector at the 2-digit ISIC level over the period 2002-2018. The results indicate the existence of a factor in the manufacturing firms with a positive and increasing trend of knowledge-based capital accumulation. The findings also show that the accumulation of this type of capital in Iran’s manufacturing sector is in the early stages of development and highly depends on the literate labor force.

Keywords

• knowledge
• based capital
• manufacturing industries
• exploratory factor analysis