What the literature tells us 

A growing body of research explores the relationship between the knowledge economy and economic prosperity. 

For example, the study The impact of human capital on economic growth: a review by Wilson and Briscoe provides an in-depth appraisal of international research examining the links between education, training, and macroeconomic growth. Focusing on 15 EU countries, it concludes that “the impact of investment in education and training on national economic growth is positive and significant.”More specifically, the findings suggest that a 1 percent rise in school enrolment rates is associated with a 1–3 percent increase in GDP per capita growth, while an additional year of secondary education can raise annual economic growth by more than 1 percent. 

Beyond education, the literature shows that intangible assets have become increasingly central. A study titled Intangibles and national economic wealth – a new perspective on how they are linked finds that intangible capital accounts for a significant share of national wealth, reaching over 70 percent of GDP in countries such as the United States and Sweden, and 45 percent of global GDP. These findings highlight that modern economies are largely driven by intangible, knowledge-related capital rather than purely physical capital. 

Similarly, the World Bank, in its knowledge economy framework, cites several studies under its “Effective Innovation System” pillar that demonstrate the transformative effects of innovation on economic growth. 

Moreover, the impact of knowledge-related indicators on economic growth is not limited to developed countries. A study published in the journal Sustainability, examining 20 variables related to knowledge economies across 20 developing countries over the period from 1996 to 2020, finds, among other results, a direct relationship between the percentage of Internet users and economic growth. Specifically, an increase in Internet users by one unit leads to a rise in economic growth by 0.01825 units. This aligns with the idea that strong digital infrastructure can enable meaningful transformations in economic growth. 

Likewise, the study Knowledge economy factors and the development of knowledge-based economy by Sundać and Krmpotić shows that knowledge investments yield measurable economic returns regardless of income level. For instance, in middle-income countries, a unit increase in the share of tertiary education increased GDP per capita by an average of US$95 to $145. 

These examples, while illustrative, are by no means exhaustive. A large and growing body of research beyond these cases continues to support the link between knowledge and economic growth. 

So, does knowledge cause prosperity? 

In reality, this chart alone, while pointing in this direction, cannot prove causality. However, when viewed alongside decades of theoretical and empirical research, the chart appears to point to a relationship between knowledge and economic growth that is deeply structural rather than accidental.