Effects of the Knowledge-Based Economic Variables on the High-Tech Industries (Panel Data Approach by GLS)

Knowledge based economies are more strongly dependent on the production, distribution and use of knowledge than ever before. Output and employment are expanding fastest in high-technology industries, such as computers, electronics and aerospace. High-tech refers to technology that is at the cutting edge and the most advanced technology available. High technology industries and services are central part of knowledge-based economy, and one of the main economic indicators for measure the knowledge in economic. In this paper, we introduce the principles and indicators of high-tech industries and analysis effect of the knowledge-based economy variables (ICT, R&D and Education expenditures) on their production. We have developed a model of high-tech industries production. This model has been estimated for 48 countries in 2000-2007 with using GLS Panel Data Approach. The results of the analysis show a positive and significant effect of ICT, R&D and education on high-tech industries. Elasticity calculation shows one percent increase in R&D will result 0.48 present increases in high-tech industrial production, Also one percent increase in ICT will result 0.68 present increases in high-tech industrial production and finally one percent increase in Education will result 0.29 percent increase on high-tech industrial production. So we require a lot of attention to R&D, ICT and Education in program and policy development of high tech industries.