The Influence of Knowledge-based Economy and Accountability on Economic Growth

Abstract

This research analyzes the influence of a knowledge-based economy and accountability on economic growth. A knowledge-based economy focuses on the importance of innovation, technological infrastructure, institutions, and quality human resources in driving productivity and competitiveness. Meanwhile, accountability involves transparency and efficiency in the management of public funds as well as reducing corruption, all of which contribute to a stable and predictable economic environment. This research finds that the synergy between a knowledge- based economy and government accountability can create conditions conducive to economic growth. Through case studies from the ten countries with the highest GDP in East Asia and Southeast Asia using a quantitative approach and the Partial Least Squares (PLS) analysis tool, the research results show that education and skills do not significantly influence economic growth. In contrast, education and skills have a significant favorable influence. Regarding innovation, IT infrastructure shows a significant adverse effect on economic growth, whereas IT infrastructure hasa considerable positive impact on innovation; institutions do not have a substantial effect on economic growth, while institutions have a considerable positive impact on innovation. Accountability does not show a substantial effect on economic growth. Accountability has a positive impact on innovation, and innovation has a significant positive effect on economic growth. Knowledge and technology, supported by accountable government, can increase investor confidence and encourage inclusive economic growth. In conclusion, a strategy that integrates strengthening the knowledge-based economy and increasing government accountability is essential to promote long-term economic growth in the East and Southeast Asia Region.