The Dynamic Relationship Between Technology Innovation and Human Development in Technologically Advanced Countries: Fresh Insights from Quantiles-on-Quantile Approach

Our study investigates the relationship between technology innovation and human development in technologically advanced countries using data from quarterly observations from the last decade of the twentieth century to the first two decades of the twenty-first century. This objective of this study is to implement Quantile-on-Quantile regression (QQ) technique that as formulated by Sim and Zhou (J Bank Finance 55:1–8, 2015) and the renowned Granger-causality in quantiles as proposed by Troster (Econom Rev 37(8):850–866, 2018) examine the basic relationship between the given quantiles of technology innovation and their effects on the quantiles of human development. Therefore, the outcomes of this study explain the overall interdependence of technology innovation and affect the overall human development index. It is enumerated that the empirical results indicate that a significant positive relationship exists between technology innovation and human development in all selected technologically advanced countries, predominantly in both low and high tails. Moreover, the outcomes of Granger causality quantiles indicate a bi-directional fundamental relationship between these two variables in the dataset of all countries. The outcomes of the observations are extended to the recent findings on these two variables’ nexus and imply a differential impact on the technologically advanced countries. This causality guides us to offer some specific policy recommendations to each group of countries.