"Technological Innovation and Economic Growth in Latin America "

Abstract

This paper is aimed at analyzing the impact of technological innovation on economic growth for twelve representative countries in Latin America during the period 1996-2008. To do this, a dynamic panel data model is developed and estimated with Generalized Method of Moments (GMM) system. The empirical evidence presented in this paper shows that the processes of technological innovation have a positive impact on economic growth in the region, suggesting that Latin American countries might achieve economic growth in a context of incentives for technological innovation. The article focuses on Latin American economies that account for most of the product in the region, and an analysis of dynamic panel data that allows a greater number of countries, of variables and periods is performed. The main finding is that investment in research, patents and exports of high-tech products are relevant to raise the total factor productivity and increase per capita GDP in most Latin American countries.