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Does democracy cause innovation? An empirical test of the popper hypothesis

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  • Gao, Yanyan
  • Zang, Leizhen
  • Roth, Antoine
  • Wang, Puqu

Abstract

Democratic countries produce higher levels of innovation than autocratic ones, but does democratization itself lead to innovation growth either in the short or in the long run? The existing literature has extensively examined the relationship between democracy and growth but seldom explored the effect of democracy on innovation, which might be an important channel through which democracy contributes to economic growth. This article aims to fill this gap and contribute to the long-standing debate on the relationship between democracy and innovation by offering empirical evidence based on a data set covering 156 countries between 1964 and 2010. The results from the difference-in-differences method show that democracy itself has no direct positive effect on innovation measured with patent counts, patent citations and patent originality.

Suggested Citation

  • Gao, Yanyan & Zang, Leizhen & Roth, Antoine & Wang, Puqu, 2017. "Does democracy cause innovation? An empirical test of the popper hypothesis," Research Policy, Elsevier, vol. 46(7), pages 1272-1283.
    • Handle: RePEc:eee:respol:v:46:y:2017:i:7:p:1272-1283
    DOI: 10.1016/j.respol.2017.05.014
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    More about this item

    Keywords

    Democracy; Innovation; Patent data; DID method;
    All these keywords.

    JEL classification:

    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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