Opportunities to Catch Up Advanced Countries by Investing in Technologies

Abstract

Growing internationalization constitutes an opportunity to catch up by investigating in technology. Recently a significant amount of papers analysed phenomenon of technological catch up at domesticforeign company‘s level. However, the need for empirical studies at country’s level is relevant as well. The main aim of the paper is to evaluate the relation among investment in technology, technological progress and macro-economic indicators and in this way to estimate opportunities of investing in technology to catch up advanced countries at macro level. We applied theoretical framework of neoclassical growth theory to explore relation between investment in technology, technological progress and macro-economic indicators in different countries. The approach used in the paper is quantitative. Research results show that regardless income level, countries can increase economic growth rates and catch up higher income countries by making appropriate decisions of investment, changing the structure of investment in technologies by funding sources and spheres. Research contributes to the scientific literature of technological progress and country‘s economic growth by providing empirical evidence of 44 countries.

Keywords

• catch up; economic growth; investment in technology; macro-economic indicators
• catch up
• economic growth
• investment in technology
• macro-economic indicators