Abstract
Panel cointegration techniques applied to pooled data for 27 countries for the period 1960 to 2000 indicate that (1) government spending in education and innovation indicators is cointegrated; (2) education hierarchy is relevant when explaining innovation; and (3) relationship between education and innovation can be obtained after an accommodation of a level structural break.
Notes
1The countries are Australia, Austria, Belgium, Brazil, Canada, China, Denmark, England, Finland, France, Holland, Hong Kong, India, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Norway, New Zealand, Russia, South Africa, Spain, Switzerland, Sweden and the United States.