| Abstract: |
This paper aims to discuss the relationship between knowledge, knowledge
economy and economic development in the Arab region. It aims to contribute to
improve understanding and provide valuable contribution to the increasing
debate in the international literature concerning the relationship between
knowledge economy and economic development in the Arab region. We use the
descriptive and comparative approaches and methods of analysis and use the
conceptual framework and indicators often used in the international literature
to discuss the relationship between knowledge, knowledge economy and economic
development in the Arab region. Different from previous studies in the Arab
literature, we fill the gap in the Arab literature, we present an in-depth and
a more comprehensive analysis of the relationship between knowledge economy
and economic development in the Arab region defined by income level using
recent secondary data related to knowledge economy obtained from the Global
Innovation Index Report (2018) and the World Bank (2012). Our results support
the first hypothesis concerning the considerable variation in the promotion of
knowledge economy depending on the level of economic development across the
Arab countries. Our findings verify the second hypothesis that the
relationship between knowledge economy and economic development in the Arab
region is determined by several factors including economic development,
economic incentives and institutional regime, education and human resources,
innovation system and Information and Communication Technology. Our results
support the third hypothesis that sound and coherent policies for the
promotion of knowledge economy through the promotion of economic incentives
and institutional regime, education and human resources, the innovation system
and Information and Communication Technology would contribute to accelerate
achievement of inclusive growth and sustainable development in the Arab
countries. Our results in the Arab region show positive relationship between
income level and knowledge index, knowledge economy index and knowledge
economy index and most of knowledge economy indicators including knowledge
workers, knowledge-intensive employment, knowledge absorption, knowledge and
technology outputs, knowledge impact and knowledge diffusion. Our findings in
the Arab region show positive relationship between income level and all
knowledge economy index pillars (economic incentive and institutional regime
pillar, education and human resources pillar, the innovation system pillar,
and information and communication technology (ICT) pillar) and all factors
facilitating the promotion of knowledge economy including institutions, human
capital and research, education, tertiary education, research & development
(R&D), infrastructure, information and communication technologies, and
innovation. The major policy implication and recommendation that the promotion
of knowledge economy depends on promotion of institutions, economic incentive
and institutional regime, education, human resources and research (human
capital, education, tertiary education, research & development (R&D)),
innovation system (innovation input, output and efficiency) infrastructure,
and information and communication technologies. |