The Relationship between technology and economic growth in the context of R&D based endogenous growth models and the separation of brain-muscle power in employment: A Panel causality analysis of Turkey-United Kingdom

Since the 20th century, concepts such as technology, innovation and information society have started to show their effects in all areas of our lives. Factors such as the level of knowledge, speed of adaptation to technology, technology transfer, international specialization and geographical location cannot be the same for every country, and they cannot show their effect on economic growth at the same rate. When it comes to economic growth and employment, the distinction between brain and muscle power gets involved. This study seeks an answer to the relationship between technology and economic growth and thus aims to reach the brain-muscle power distinction. In this study, both the relationship between technology and economic growth will be analyzed and the distinction between brain and muscle power will be mentioned. The time dimension was limited to the years 1996-2022, and EViews 13 and Stata 18 package programs were used for panel causality analysis. The presence of cross-sectional dependence has been determined. A one-way causality relationship was determined from economic growth, which is the dependent variable, to employment in the agricultural sector, number of patents and R&D expenditures. It has been determined that Turkey supports intensively muscle power employment and relatively less brain power employment, while the United Kingdom supports intensively brain power employment and relatively muscle power employment. Societies should accelerate their steps towards becoming an information society and support technology-based employment areas with special incentives. The assumption that stable economic growth passes through technology should not be ignored. Increasing the skilled labor force is therefore necessary to increase brainpower employment. By increasing brainpower employment, the productivity of outputs will follow each other. Positive chains will lead to economic growth.