Is innovation the story of Taiwan's economic growth?

Does the miracle of Taiwan's postwar economic growth rely principally on factor accumulation? This paper investigates the role played by innovation, both domestic and worldwide, in explaining Taiwan's economic growth. Empirical results support that increase in domestic patenting leads to increase economic growth in Taiwan. Furthermore, the long-run growth is also driven by the worldwide discovery of ideas. (C) 2006 Elsevier Inc. All rights reserved.