Examining the national innovation capacity and economic growth of Pakistan, India and Sri Lanka: A comparative study

This study focuses on the innovation capacity and investigates how innovation capacity has become the crucial driving force for economic growth that arises in the South Asian as well other developing countries. This work is based on time series data ranging from 1999 to 2012. The South Asian countries have achieved significant economic development in 2009, India has benefited from a giant GDP growth rate of 5.0%, Sri Lanka has 3.5% and Pakistan’s GDP growth of 0.4%, but in 2013, Sri Lanka has attained GDP growth of 6.3%, which is greater than India GDP growth of 5.7%, and Pakistan GDP growth of 3.6%. R&D inputs indicate that these countries have not been very staunch to R&D and their output is quite different. The government of these countries must play their major role to reform the innovation system to become more adoptable to economic development and they mainly concentrate on R&D.