High-Tech Human Capital: Do the Richest Countries Invest the Most?

FEUNL Working Paper No. 430

14 Pages Posted: 15 Feb 2006

See all articles by Tiago Neves Sequeira

Tiago Neves Sequeira

University of the Interior of Beira - Faculty of Social Sciences and Humanities; Nova School of Business and Economics

Date Written: 2003

Abstract

Research and Development (R&D) endogenous growth models predict and most evidence show that investment in R&D increase with economic development. We consider the type of human capital mainly used in research labs and show that the richest countries are investing proportionally less than middle income countries in engineering and technical human capital. We generalize this result, controlling for other explanatory variables, cross-time error correlations, heteroskedaticity and endogeneity bias. Thus, we establish a stylized fact (about human capital composition) that is a puzzle to economic theory: the ratio of high-tech to low-tech human capital presents an inverted U-shaped relationship with GDP per capita.

Keywords: human capital composition, high-tech human capital, R&D, Development

JEL Classification: O15, O33, O50

Suggested Citation

Neves Sequeira, Tiago, High-Tech Human Capital: Do the Richest Countries Invest the Most? (2003). FEUNL Working Paper No. 430, Available at SSRN: https://ssrn.com/abstract=882048 or http://dx.doi.org/10.2139/ssrn.882048

Tiago Neves Sequeira (Contact Author)

University of the Interior of Beira - Faculty of Social Sciences and Humanities ( email )

6200-209 Covilha
Portugal

Nova School of Business and Economics ( email )

Campus de Carcavelos
Rua da Holanda, 1
Carcavelos, 2775-405
Portugal

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