The Impact of Knowledge Creation and Sharing on Long-Term Growth: Country Cross-Section Comparison between OECD, Non-OECD and Arab Countries, 1990-2005

By Salih Osman.

Published by The Organization Collection

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This paper attempts to identify and test the theoretical foundations of the relationship between knowledge creation
and sharing and long-term per capita GDP growth rate. It aimed to examine the relationship between knowledge
creation and sharing and economic growth within the framework of both the endogenous economic growth theory,
as well as, the evolutionary economic growth theory. Under both theoretical models, technology and knowledge is
created within the economic system via the research and development effort in both private and public sectors,
given, a certain level of human capital, an efficient institutional framework, and a general policy aimed at the
promotion of innovations and entrepreneurship. In order to quantify the effect of knowledge accumulation and sharing
on economic growth, the paper has constructed two indices; one for measuring the level of knowledge creation, and the
other for measuring knowledge sharing; calculations are based on a number of knowledge-based economy indicators.
The indices were then used to estimate and compare the effect of knowledge creation and sharing on long-term per
capita GDP growth rate across three groups of 87 economies. The three groups of economies include: (a) the
Organization for Economic Co-operation and Development (OECD) 30 countries group- mainly industrialized developed
economies; 44 Non-OECD developing countries, and 13 Arab countries; including all the Gulf Co-operation Council
(GCC) oil-exporting economies. The comparison of the empirical findings across the three groups of countries
supported both the endogenous and the evolutionary theories argument with regard to the positive impact and
positive spill over effect of knowledge on growth. The paper’s findings were unique in distinguishing between the
relatively low rate of return on investment (ROI)in knowledge in the OECD group, referred to in this paper
as “knowledge creation leaders”, and relatively higher rate of knowledge creation ROI in the developing countries
referred to as “knowledge creation followers”. The difference in ROI rate is caused by the positive spillover
effect of knowledge transfer from developed industrialized countries to the developing countries. Finally, the paper
proposes a list of policy recommendations for allocation of resources to promote research and development (R&D)
activities; develop information communication technologies (ICT) infrastructure; and creation of a credible legal and
institutional framework conducive for knowledge creation and sharing, particularly in developing countries. The
empirical findings extended the knowledge creation and sharing indices to include the selected list of Arab
Countries, particularly the GCC countries in comparison to the most developed economies of the world in the OECD
group.

Keywords: Knowledge Creation, Knowledge Sharing, Per Capita GDP Growth Rate, Indices, OECD, GCC, Arab Countries, Knowledge-Based Economy

The International Journal of Knowledge, Culture and Change Management, Volume 7, Issue 12, pp.65-84. Article: Print (Spiral Bound). Article: Electronic (PDF File; 753.471KB).

Dr. Salih Osman

Assistant Professor, College of Commerece and Economics, Sultan Qaboos University, Muscat, Oman

Salih Osman, Dept. of Economics and Finance, College of Commerce and Economics, Sultan Qaboos University, Sultanate of Oman. My main research emphasis is knowledge and information economics and development, particularly, in developing countries. In addition to my economic training background, I have an experience and professional backgroung in information technology development application. Conducted research in knowledge economy, technology transfer, and growth in developing countries (mainly GCC, Asian, and African Sub-saharan) compared to developed countries (OECD. Developed a macroeconomic model for Sub-saharan Africa long-term growth with emphasis on institution, political stability and human capital and lack of technology transfer and absorption as main determinants of the African growth compared to other developing countries. Dr. Osman teaches microeconomics, macroeconomics, statistics, and mathematical economics. Currently, Dr. Osman is the head of the Research and Statistics Section at the General Secretariat of Executive Council of Abu-Dhabi.

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