Innovation, human development and economic growth : an empirical analysis

In this Chapter I examine the cause and effect relations, setting aside the performance of individual regions and states, and focusing on the relationships between the variables. A first step in the analysis of the causal links between innovation, human development and income, consists of performing a correlation analysis. I analyse some simple econometric models that help us explore, in more detail, the relationship between these three dimensions. The results indicate a mutually reinforcing relationship between them. The correlation between human development and innovation was found to be particularly strong. The regional analysis has further confirmed the existence of virtuous circles and the presence of spatial interrelationships, both in terms of spillover and feed-back effects.