New determinants of Economic growth in the context of Knowledge Economy

Abstract

The research was about describing the concept of knowledge knowledge economy and its determinants. The analysis of the thesis was done by performing a correlation analysis to verify the relationship between selected determinants of knowledge economy and economic growth. The concept of economic growth and knowledge economy are defined in the first and second chapters. Knowledge economy is generalized as using human intelligence to create value. Three research questions were established to find the relationship between the Input Variables and GDP in chose countries (Sweden, Netherlands and United Kingdom). To establish this relationship, Pearson's product moment correlation analysis was performed. It was revealed from the analysis that; all the five inputs variables have strong positive relationship with GDP in Sweden. That is, Patent, HRST, Int.Exp., R&D personnel and Tertiary education graduates are all a good determinants of knowledge economy. It shows that, the more these inputs variables increase the more advanced Sweden would be and vice versa. Surprisingly, in the United Kingdom, there was a negative relationship existing between HRST, Tertiary education graduates and GDP. Also, there was another surprise in Netherlands. It was revealed that; tertiary education graduates and patent had a negative relationship with GDP growth. This holds that if much attention is given to these inputs variables (determinants of knowledge economy), there would be a positive influence on the economic performance of the nation. Because they have proven to be a very good determinants of knowledge economy and economic growth.