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To focus on new and emerging areas of research and education, Centres of Excellence have been established within the Institute. These ‘virtual' centres draw on resources from its stakeholders, and interact with them to enhance core competencies

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Faculty members at IIMB generate knowledge through cutting-edge research in all functional areas of management that would benefit public and private sector companies, and government and society in general.

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IIMB Management Review

Journal of Indian Institute of Management Bangalore

IIM Bangalore offers Degree-Granting Programmes, a Diploma Programme, Certificate Programmes and Executive Education Programmes and specialised courses in areas such as entrepreneurship and public policy.

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About IIMB

The Indian Institute of Management Bangalore (IIMB) believes in building leaders through holistic, transformative and innovative education

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INNOVATION AND ECONOMIC GROWTH IN EUROPEAN ECONOMIC AREA COUNTRIES: THE GRANGER CAUSALITY APPROACH

Innovation is key to economic growth and is critically important in contemporary economies. It helps the economy on multiple fronts, namely, economic growth, global competitiveness, financial systems, quality of life, infrastructural development, employment, and openness to trade.. There are many studies  exploring the link between innovation and economic growth, and most of these studies have confirmed a positive relationship between the two, both directly and indirectly. However, most of these previous studies investigate the relationship between innovation and economic growth without looking at the direction of Granger causality. Hence, this paper makes an attempt to examine the direction of causality between innovation and economic growth in the European Economic Area (EEA) countries for the period 1989-2014. 

This study uses three different innovation indicators, namely, number of patents (residents), number of patents (non-residents), and researchers in research and development (R&D) activities. We first deploy unit root and cointegration to know the existence of long-run equilibrium relationship between innovation and economic growth. Subsequently, we deploy vector auto-regressive model to test  the Granger causalities between these two variables. The study finds the presence of both unidirectional and bidirectional causality between innovation and economic growth. These results vary from country to country, depending upon the types of innovation indicators that are used in the empirical investigation process. The policy implication of this study is that economic policies should recognise the differences in innovation and economic growth in order to maintain sustainable development in EEA countries.