Can Developing Countries Leverage Knowledge for Faster Economic Growth — Case of India

摘要

Although, "knowledge" has become a key production factor, the national balance sheets are still dominated by traditional factors of production. Hence, there is an imperative need for developing an understanding of "knowledge capital". The topic is pertinent to national economies that are making a rapid transition to a society based on knowledge work. This paper makes an attempt to assess the national intellectual capital of India and its potential to make India a powerful global economy. Since, the assessment based on traditional methods is not appropriate, framework suggested by Malhotra [2000] is used to account for the increasingly important role of knowledge-based assets in national performance. The analysis suggests that knowledge is key driver for India's future economic growth and India fulfills all the three conditions to take-off for faster economic development - critical initial stock of capital, openness and sufficient amount of initial knowledge.