Innovation-Driven Labour Productivity Growth: Empirical Evidence from Developing Economies

Preeti Puja and Nalin Bharti
Additional contact information
Preeti Puja: Indian Institute of Technology Patna, India
Nalin Bharti: Indian Institute of Technology Patna, India

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 15, 650-659

Abstract: Innovation is widely recognised as a fundamental engine of economic growth and productivity enhancement. In the context of developing economies, where there is the existence of structural challenges and dynamic opportunities, innovation plays a crucial role in transforming production processes and improving the productivity of the workforce. This study investigates the relationship between innovation indicators and labour productivity in developing economies, including China, India, Brazil, Thailand and Indonesia. Recognising the challenges and opportunities these countries face, the research provides a comparative analysis to identify key factors influencing labour productivity growth through innovation. This research employs a quantitative approach, utilising data from the World Bank, the International Labour Organisation, and various national statistical agencies. Using panel data analysis covering the period from 2007 to 2022, the study evaluates the impact of key innovation indicators, such as R&D expenditure, patent filings and technological adoption, on Labour productivity growth across the selected developing nations. The empirical results show the importance of innovation determinants in enhancing the value added by workers in the economy’s production process. The findings highlight the varying pace and effectiveness of innovation-driven growth in productivity among the countries studied and offer insights into the key drivers of innovation for enhancing labour productivity. The policy recommendations include targeted investments in education and skills training, fostering a conducive regulatory environment for innovation, and improving investment in the R&D sector to drive growth in labour productivity. These strategies are essential for enabling sustained productivity growth and inclusive economic development in the developing world.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... issue-15/650-659.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... eveloping-economies/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:9:y:2025:i:15:p:650-659

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().