Implications of Intellectual Property Protection, and Science and Technological Development in the Manufacturing Sector in Selected Economies
Authors: Ajay K. Singh, B. Jyoti Singh, Shah Nawaz Ashraf
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Several studies have measured the influence of socioeconomic factors, IPRs, science and technology, and innovation-related activities, and government policies on economic growth in developed and developing economies. However, the manufacturing sector contributes a large share in the GDP of most economies. Growth of the manufacturing sector depends upon socio-economic factors, science and technological change associated variables, and IPRs related activities. For this, limited studies could investigate the influence of aforesaid factors on the manufacturing sector across countries. This study, therefore, provides a vital technique to develop the intellectual property protection index (IPPI), science and technological development index (STDI), and socio-economic development index (SEDI) using composite Z-score technique in selected 41 developed and developing economies during 2005–2013. IPPI, STDI, and SEDI are the combined indexes of 7, 7, and 15 associated factors respectively. The aforementioned indexes identify the relative position of selected economies in IPRs, science and technological development, and socio-economic development. As per the assessed values of IPPI, STDI, and SEDI, this study reports that there is a high diversity in intellectual property awareness, science and technology development, and socio-economic development in 41 economies. Accordingly, it measures the influence of aforesaid indexes on manufacturing value-added using country-wise panel data. Linear and log-linear regression models are used to estimate the regression coefficients of explanatory variables. Empirical results indicate that science and technological development, socio-economic development, and intellectual property protection-related activities have a positive and statistically significant impact on manufacturing value-added. It facilitates several policy suggestions to increase the growth of the manufacturing sector worldwide.