Research Economic Growth Model on Innovation-Based of Khanh Hoa Province During 2011-2021

Abstract

This study will test the growth model based on science, technology and innovation to identify the main driving factors and the bottlenecks in the socio-economic development of Khanh Hoa province from 2011-2021. Estimates of the elasticity of the STI (Science Technology and Innovation) index show that when this index increases by 1%, economic growth is about 0,27%. Although the contribution of STIs is still modest (the lowest of the four factors), in terms of potential, Khanh Hoa's STI still contributes the most to future growth. There are two bottlenecks in Khanh Hoa's growth model: First, intermediary organizations have not been formed or developed to participate in the province's innovation activities jointly; Second, the relationship between organizations in the innovation system, especially the relationship between enterprises and local government, is the most crucial bottleneck. Enterprises need more trust and economic operation of the local government, such as low dynamism, inability to adapt to changes in the environment, inflexibility to respond to changes and passive risk management.