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Democratization is the determinant of technological change

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Abstract

The purpose of this paper is to analyze the relationship between democracy and technological innovation. The primary findings are that most free countries, measured with liberal, participatory, and constitutional democracy index, have higher technological innovation than less free and more autocratic countries, so that the former have a higher interaction among social, economic and innovation systems with fruitful effects on economic growth and the wealth of nations. In fact “democracy richness” in these countries displays a higher rate of technological innovation. In addition, democratization is an antecedent process (cause) to technological innovation (effect), which is a major wellknown determinant of economic growth. These findings lead to the conclusion that policy makers need to be cognizant of positive association between democratization and technological innovation to sustain modern economic growth and future technological progress in view of the accelerating globalization.

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Paper provided by Institute for Economic Research on Firms and Growth - Moncalieri (TO) in its series CERIS Working Paper with number 200806.

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Length: 30 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:csc:cerisp:200806

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Keywords: Democratization; Technological Innovation; Patents; Royalty Licenses Fee; Economic Grow;

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  1. Robert J. Barro, 1999. "Determinants of Democracy," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S158-S183, December.
  2. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  3. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity across Four European Countries," NBER Working Papers 12722, National Bureau of Economic Research, Inc.
  4. Ned Howenstine, 2008. "Innovation-related data in bureau of economic analysis international economic surveys," The Journal of Technology Transfer, Springer, vol. 33(2), pages 141-152, April.
  5. Freeman, Chris & Louca, Francisco, 2001. "As Time Goes By: From the Industrial Revolutions to the Information Revolution," OUP Catalogue, Oxford University Press, number 9780199241071, September.
  6. Christine Gulbranson & David Audretsch, 2008. "Proof of concept centers: accelerating the commercialization of university innovation," The Journal of Technology Transfer, Springer, vol. 33(3), pages 249-258, June.
  7. Spanos,Aris, 1986. "Statistical Foundations of Econometric Modelling," Cambridge Books, Cambridge University Press, number 9780521269124, April.
  8. Hall, Bronwyn H & Ziedonis, Rosemarie Ham, 2001. "The Patent Paradox Revisited: An Empirical Study of Patenting in the U.S. Semiconductor Industry, 1979-1995," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 101-28, Spring.
  9. Oecd, 2004. "Patents and Innovation: Trends and Policy Challenges," Levine's Working Paper Archive 122247000000000502, David K. Levine.
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