| Abstract | We present an input-output model on domestic and foreign knowledge capital, and to analyze the effects of different knowledge capital factors on the total factor productivity (TFP) and technological progress of different economies. The domestic knowledge capital is divided into R&D capital(RC), human capital(HC), innovation infrastructure capital(IC) and technology capital(TC), and the knowledge capital of foreign countries is divided into knowledge capital of imported spillover and FDI’s spillover.130 sample economies are divided into innovation leaders club, innovation followers club and innovation marginalized club based on the knowledge capital index, using cross-nation panel data from 1981-2010. The empirical results show that RC, HC, IC and TC have significantly positive effects on TFP, but there are obvious differences in the influence degree of different knowledge capital factors on different innovation clubs. We find that innovation leaders club is HC>RC>TC>IC, innovation followers club is HC>IC>RC>TC, innovation marginalized club is HC>IC>TC>HC. China is now at the important stage of transition from innovation follower country to innovation leader country, so that the key point of innovation policies will allocate innovation resources efficiently and enhance the input-output capacity of knowledge capital. |