KNOWLEDGE ECONOMY AND REGIONAL DEVELOPMENT IN MIDDLE EAST COUNTRIES

Abstract

Empirical literature has shown that the stock of knowledge could be broadly defined as an important factor for economic growth. On the other hand, a number of studies provide evidence of the contribution of knowledge spillover to regional economic development. The aim of this study is to analyze the stylized facts related to knowledge economy, investment in R&D and technological improvement in the Middle East region, in order to adopt policies and strategies for the region countries to use the benefits of knowledge-based economy. The results of the study indicate that related investments in research and development, education, information structure and innovation have been insufficient in most countries of the region; and investment to develop knowledge-base economy as well as intra & inter regional knowledge spillovers could be a source of economic growth and development for the region.

Keywords

• Knowledge-base economy, Knowledge spillovers, Economic growth, Regional development, Middle East.

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