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The impact of governance and infrastructure on innovation

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Author Info

  • Rudolf Sivak
  • Anetta Caplanova
  • John Hudson

Abstract

This article uses a recent wave of the World Bank Enterprise Survey to analyse four aspects of innovation: (i) the introduction of a new product or service, (ii) product/service upgrading, (iii) R&D and (iv) the licensing of technology. Good governance affects innovation on several dimensions. Bureaucracy, in the form of permits posing a problem for firms, can deter firms from innovating themselves, moving them towards the licensing of foreign technology, and corruption deters R&D. However, there is evidence of a negative impact of good and effective courts on innovation and R&D. Although perhaps slightly surprising, this is not inconsistent with much of the literature. In addition regional infrastructure, which is to varying degrees also determined by government policy, is significant in determining innovation. This includes transport, IT and financial infrastructure.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/14631377.2011.570050
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 23 (2011)
Issue (Month): 2 ()
Pages: 203-217

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Handle: RePEc:taf:pocoec:v:23:y:2011:i:2:p:203-217

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Cited by:
  1. Andrés Rodríguez-Pose & Marco Di-Cataldo, 2014. "Quality of government and innovative performance in the regions of Europe," Papers in Evolutionary Economic Geography (PEEG) 1406, Utrecht University, Section of Economic Geography, revised Feb 2014.
  2. Anetta Čaplánová & Rudolf Sivák & John Hudson, 2012. "The Impact of Foreign Direct Investment on Firms´ Innovation Activities," Politická ekonomie, University of Economics, Prague, vol. 2012(6), pages 764-779.

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