Technology Transfer, Technological Progress and Economic Growth: The Role of Institutional Quality in Pakistan

Abstract

This study investigates the role of institutions in Pakistan’s efforts to stimulate technological progress, specifically analysing the evolution of institutional quality, technology transfer through technical cooperation grants, technological progress and economic growth. The role of institutional quality is emphasised, as proactive institutional coordination is paramount to achieve technological upgrading. As the evidence amassed shows, Pakistan’s institutional quality ranks lower than the successful industrialisers of East Asia, such as Japan, Korea and Taiwan. To ensure the robustness of our findings, data from 1996 to 2020 was deployed. The findings underscore the importance of policymakers in Pakistan directing their attention to fostering skills and competencies essential for patents or cultivating an entrepreneurial mindset, underlining the critical role of strong institutions in this process.