Innovation, Human capital and Economic growth in Ethiopia: A systematic review and empirical analysis

In today’s world, national innovation system (NIS) is one way of fostering economic growth, especially in developing countries. Human capital, research and development (R&D) and other innovation activities are the fundamental pillars of NIS. The aim of this study is to evaluate the contribution...

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Main Authors: Sisay Tola Yadete, Birku Reta Entele, Junseok Hwang
Format: Article
Language:English
Published: Adama Science and Technology University 2025-08-01
Series:Ethiopian Journal of Science and Sustainable Development
Subjects:
Online Access:https://213.55.101.19/index.php/EJSSD/article/view/1060
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author Sisay Tola Yadete
Birku Reta Entele
Junseok Hwang
author_facet Sisay Tola Yadete
Birku Reta Entele
Junseok Hwang
author_sort Sisay Tola Yadete
collection DOAJ
description In today’s world, national innovation system (NIS) is one way of fostering economic growth, especially in developing countries. Human capital, research and development (R&D) and other innovation activities are the fundamental pillars of NIS. The aim of this study is to evaluate the contribution of human capital, innovation (patent as a proxy) and R&D on Gross Domestic Product (GDP) growth rate through systematic review and empirical analysis. An autoregressive distributed lag (ARDL) model was used to analyze the data extracted from the World Bank database and world innovation patent office data set from year 1990 to 2023. From the systematic review result, the roles of human capital and R&D expenditure have shown a positive influence on GDP growth rate of Ethiopia. The estimated model re-enforced the systematic review result as both human capital and R&D have shown statistically significant effect on GDP growth rate. In addition, gross capital formation and utility patent have also positive effect on real GDP growth. Recognizing the crucial role of human capital and R&D, this study suggests to the Ethiopian government to bolster these areas to drive effective economic growth. Fostering strong collaboration among NIS actors, and developing policies that strategically expand the pool of skilled and educated individuals in various sectors are recommended.
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spelling doaj-art-e68117d76c384b2cbda72266e3ba54c72025-08-20T02:52:48ZengAdama Science and Technology UniversityEthiopian Journal of Science and Sustainable Development1998-05312663-32052025-08-0112210.20372/ejssdastu:v12.i2.2025.1060Innovation, Human capital and Economic growth in Ethiopia: A systematic review and empirical analysisSisay Tola Yadete0Birku Reta Entele1Junseok Hwang2Adama Science and Technology UniversityAdama Science and Technology UniversitySeoul National University In today’s world, national innovation system (NIS) is one way of fostering economic growth, especially in developing countries. Human capital, research and development (R&D) and other innovation activities are the fundamental pillars of NIS. The aim of this study is to evaluate the contribution of human capital, innovation (patent as a proxy) and R&D on Gross Domestic Product (GDP) growth rate through systematic review and empirical analysis. An autoregressive distributed lag (ARDL) model was used to analyze the data extracted from the World Bank database and world innovation patent office data set from year 1990 to 2023. From the systematic review result, the roles of human capital and R&D expenditure have shown a positive influence on GDP growth rate of Ethiopia. The estimated model re-enforced the systematic review result as both human capital and R&D have shown statistically significant effect on GDP growth rate. In addition, gross capital formation and utility patent have also positive effect on real GDP growth. Recognizing the crucial role of human capital and R&D, this study suggests to the Ethiopian government to bolster these areas to drive effective economic growth. Fostering strong collaboration among NIS actors, and developing policies that strategically expand the pool of skilled and educated individuals in various sectors are recommended. https://213.55.101.19/index.php/EJSSD/article/view/1060GDPnational innovation systemresearch and developmentpatent
spellingShingle Sisay Tola Yadete
Birku Reta Entele
Junseok Hwang
Innovation, Human capital and Economic growth in Ethiopia: A systematic review and empirical analysis
Ethiopian Journal of Science and Sustainable Development
GDP
national innovation system
research and development
patent
title Innovation, Human capital and Economic growth in Ethiopia: A systematic review and empirical analysis
title_full Innovation, Human capital and Economic growth in Ethiopia: A systematic review and empirical analysis
title_fullStr Innovation, Human capital and Economic growth in Ethiopia: A systematic review and empirical analysis
title_full_unstemmed Innovation, Human capital and Economic growth in Ethiopia: A systematic review and empirical analysis
title_short Innovation, Human capital and Economic growth in Ethiopia: A systematic review and empirical analysis
title_sort innovation human capital and economic growth in ethiopia a systematic review and empirical analysis
topic GDP
national innovation system
research and development
patent
url https://213.55.101.19/index.php/EJSSD/article/view/1060
work_keys_str_mv AT sisaytolayadete innovationhumancapitalandeconomicgrowthinethiopiaasystematicreviewandempiricalanalysis
AT birkuretaentele innovationhumancapitalandeconomicgrowthinethiopiaasystematicreviewandempiricalanalysis
AT junseokhwang innovationhumancapitalandeconomicgrowthinethiopiaasystematicreviewandempiricalanalysis