Nexus between technological innovation, trade, education and institutional quality: Evidence from dynamic SUR estimation

This study analyzes the various factors that promote technological advancement in lower-income nations. Additionally, it aims to provide policy recommendations that can effectively stimulate and nurture such advancements. The study employs a robust methodology, which includes the utilization of a comprehensive dataset and the application of rigorous statistical analysis techniques. A thorough examination of the current body of literature supports the foundation of this work. The study uncovers a noteworthy positive correlation among institutional quality, trade openness, and education about technological innovation. The statement implies that countries with stronger institutions create a favorable environment for the growth and progress of innovative practices. The study further emphasizes the positive influence of both domestic and international trade on the innovation process. Moreover, it emphasizes the positive influence of education on technological advancement, underscoring the importance of accessible and high-quality education in fostering innovation. Based on the empirical evidence presented in this study, it is recommended that policymakers give significant priority to the implementation of institutional reforms, facilitation of trade integration, and allocation of resources towards education. These measures are crucial for stimulating and nurturing technological advancements within lower-income nations. The study provides valuable insights that can benefit policymakers and practitioners promoting innovation-driven development in lower-income countries. Nevertheless, it is crucial to consider alternative explanations and contextual factors that may impact the interaction between these variables.