Analyzing the Impact of Technological Progress, Innovation, R&D Investment and Human Capital on Per Capita Growth Income

The purpose of this research is to analyze the relationship between technological progress, innovation, R&D, gross capital formation and per capita income growth, using 31 years' time series data from 1991-2022 and sourced from World Development Indicators, International Labor Organization (ILO), Pakistan Economic Survey and the State Bank of Pakistan. The study employed econometric tools such as Correlation Matrix and ARDL Model to determine long run relationship between variables. According to the findings, R&D expenditures and innovation have insignificant impact on per capita income growth in Pakistan due to low rate of domestic investment, political instability and low literacy rate, while labor productivity has negative impact due to illiterate and unskilled labor. The investment in fixed capital is low, which reduces total output of goods and services.