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The Impact of Low, Average, and High IQ on Economic Growth and Technological Progress: Do All Individuals Contribute Equally?

Author

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  • Burhan, Nik Ahmad Sufian
  • Mohamad, Mohd Rosli
  • Kurniawan, Yohan
  • Sidek, Abdul Halim
Abstract
Individuals that reside in the highest social stratum of intelligence (i.e., those that have a high IQ) have been shown to generate relatively more national income and are more innovative, with those that have the lowest levels of IQ being less influential on economic development. However, the degree to which all levels of IQ influence economic growth and technological innovation remains unclear. By assuming that the IQ of a population is modeled based on a bell curve, we arrange IQ into three strata, namely intellectual class, average ability citizens, and non-intellectual class, which are represented by the 95th, 50th, and 5th percentiles of cognitive ability, respectively. Our multiple hierarchical regression analysis of a sample of over 60 countries shows that the intellectual class has the greatest impact on economic growth followed by average ability citizens and the non-intellectual class in that order. Moreover, we find evidence that the impact of the intellectual class on technological progress is exceptionally more significant than even the number of professional researchers engaged in R&D activities, with average ability citizens and the non-intellectual class not significant. These findings allow us to suggest that the government and private institutions should not only employ professionals with good experiences and high academic credentials, but also those who has excellent IQ levels to work in their R&D sectors. However, in order to foster economic growth, governments should invest into facilities that benefit all societal groups of intelligence level, with highest priority given to the intellectual class, followed by the average ability citizens and the non-intellectual class respectively.

Suggested Citation

  • Burhan, Nik Ahmad Sufian & Mohamad, Mohd Rosli & Kurniawan, Yohan & Sidek, Abdul Halim, 2014. "The Impact of Low, Average, and High IQ on Economic Growth and Technological Progress: Do All Individuals Contribute Equally?," MPRA Paper 77321, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:77321
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    References listed on IDEAS

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    Cited by:

    1. Justina Banioniene & Lina Dagiliene, 2017. "Opportunities to Catch Up Advanced Countries by Investing in Technologies," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 13(1), pages 111-123.
    2. Burhan, Nik Ahmad Sufian & Che Razak, Razli & Salleh, Fauzilah & Labastida Tovar, María Elena, 2017. "The higher intelligence of the ‘creative minority’ provides the infrastructure for entrepreneurial innovation," Intelligence, Elsevier, vol. 65(C), pages 93-106.
    3. Odilova, Shoirahon, 2016. "Patent protection, intelligence and economic growth: a cross-country empirical investigation," MPRA Paper 70842, University Library of Munich, Germany.
    4. Burhan, Nik Ahmad Sufian & Kurniawan, Yohan & Sidek, Abdul Halim & Mohamad, Mohd Rosli, 2014. "Crimes and the Bell Curve: The Role of People with High, Average, and Low Intelligence," MPRA Paper 77314, University Library of Munich, Germany.
    5. Odilova, Shoirahon & Xiaomin, Gu, 2016. "IPR protection, intelligence and economic growth: a cross-country empirical investigation," MPRA Paper 71226, University Library of Munich, Germany.
    6. Burhan, Nik Ahmad Sufian & Che Razak, Razli & Salleh, Fauzilah & Labastida Tovar, María Elena, 2017. "Intelligence and the Ease of Doing Business: Does Intellectual Class Facilitate Leadership and Entrepreneurship?," MPRA Paper 77503, University Library of Munich, Germany.
    7. Zullo, Matteo, 2022. "(No) Trade-off between numeracy and verbal reasoning development: PISA evidence from Italy's academic tracking," Intelligence, Elsevier, vol. 95(C).
    8. Petros E. Ioannatos, 2021. "Brexit or Euro for the UK? Evidence from Panel Data," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(1), pages 117-138, March.
    9. Burhan, Nik Ahmad Sufian & Sidek, Abdul Halim & Kurniawan, Yohan & Mohamad, Mohd Rosli, 2014. "Has Globalization Triggered Collective Impact of National Intelligence on Economic Growth?," MPRA Paper 77316, University Library of Munich, Germany.
    10. Becker, David & Coyle, Thomas R. & Minnigh, Tyler L. & Rindermann, Heiner, 2022. "International differences in math and science tilts: The stability, geography, and predictive power of tilt for economic criteria," Intelligence, Elsevier, vol. 92(C).
    11. repec:mje:mjejnl:v:12:y:2017:i:1:p:111-123 is not listed on IDEAS
    12. Burhan, Nik Ahmad Sufian & Che Razak, Razli & Rosli, Muhamad Ridhwan & Selamat, Muhamad Rosli, 2017. "The Bell Curve of Intelligence, Economic Growth and Technological Achievement: How Robust is the Cross-Country Evidence?," MPRA Paper 77469, University Library of Munich, Germany.
    13. Ioannatos, Petros E., 2021. "Systematic growth asymmetry in the Eurozone? Evidence from a natural experiment," The Journal of Economic Asymmetries, Elsevier, vol. 24(C).

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    More about this item

    Keywords

    economic growth; innovation; intellectual class; national IQ; non-intellectual class; patent;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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