Authors: John Paolo R. Rivera, Sunyoung Won, and Tereso S. Tullao, Jr.
Year: 2021, Volume 21 Number 3
Pages: 149 – 168
With Industry 4.0, the role of research cannot be undermined. As innovations drive the economy, we explicated the contribution of knowledge capital to the macroeconomy. Following the endogenous growth theory, we estimated a three-factor Cobb-Douglas aggregate production function for selected ASEAN+3 economies. Using the total number of Scopus-indexed journals as our proposed alternative metric for knowledge capital, we found that investing in the creation of more scientific researches and using it as productive inputs allow an economy to experience growth in the long run. Results showed that increasing knowledge capital, constituting higher levels of research, creates new technologies and innovations that stimulate economic growth.
Keywords: knowledge capital, production function, research and development, Scopus