IMPACT OF INNOVATION ON VIETNAM’S ECONOMIC GROWTH IN 1990-2020

Abstract

Innovation is a common development trend of the world and Vietnam is no exception. In Vietnam, the Government issued Decision No. 569/QD-TTg on the
Strategy for Science, Technology and Innovation Development to 2030, with the goal that by 2030, science, technology and innovation will be the driving force
of growth. Therefore, this study will analyze and evaluate the role of innovation in Vietnam's economic growth in the period 1990 - 2020. Using the
Autoregressive Distributed Lag Model (ARDL), the article analyzes the impact of innovation on Vietnam's economic growth. Innovation is expressed through the
total number of patent applications (domestic and foreign). The results show that innovation is not yet a driving force for economic growth, from which the
article makes some recommendations on innovation from two perspectives of the Government and enterprises.