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Does institutional quality impact innovation? Evidence from cross-country patent grant data

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  • Edinaldo Tebaldi
  • Bruce Elmslie

Abstract

This article contributes to the literature on institutions and economic growth by conducting an empirical examination of the links between innovation and institutions. Using cross-country data and the instrumental variable method, this study finds that institutional arrangements explain much of the cross country variations in patent production. Our results also imply that controlling for institutional quality, geographic related variables are not significant in explaining patent production. This article also finds evidence to support the idea that in the long run human capital accumulation is an important factor in shaping institutions.

Suggested Citation

  • Edinaldo Tebaldi & Bruce Elmslie, 2013. "Does institutional quality impact innovation? Evidence from cross-country patent grant data," Applied Economics, Taylor & Francis Journals, vol. 45(7), pages 887-900, March.
  • Handle: RePEc:taf:applec:45:y:2013:i:7:p:887-900
    DOI: 10.1080/00036846.2011.613777
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    References listed on IDEAS

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    1. Jeffrey D. Sachs, 2000. "Tropical Underdevelopment," CID Working Papers 57, Center for International Development at Harvard University.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
    3. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1999. "Geography and Economic Development," International Regional Science Review, , vol. 22(2), pages 179-232, August.
    4. Dani Rodrik, 2000. "Institutions for High-Quality Growth: What They are and How to Acquire Them," NBER Working Papers 7540, National Bureau of Economic Research, Inc.
    5. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
    6. Jeffrey D. Sachs, 2000. "Tropical Underdevelopment," CID Working Papers 57A, Center for International Development at Harvard University.
    7. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 01A, Center for International Development at Harvard University.
    8. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    9. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
    10. John W. McArthur & Jeffrey D. Sachs, 2001. "Institutions and Geography: Comment on Acemoglu, Johnson and Robinson (2000)," NBER Working Papers 8114, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Kamilia Loukil, 2016. "Role of Human Resources in the Promotion of Technological Innovation in Emerging and Developing Countries," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 341-352, September.
    2. Mehmet Ugur, 2013. "Governance, market power and innovation: evidence from OECD countries," Chapters,in: Governance, Regulation and Innovation, chapter 2, pages 25-57 Edward Elgar Publishing.
    3. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    4. Shouro Dasgupta & Enrica De Cian & Elena Verdolini, 2016. "The political economy of energy innovation," WIDER Working Paper Series 017, World Institute for Development Economic Research (UNU-WIDER).
    5. d'Agostino, Giorgio & Scarlato, Margherita, 2012. "Inclusive Institutions, Innovation and Economic Growth: Estimates for European Countries," MPRA Paper 43098, University Library of Munich, Germany.
    6. Mehmet Ugur, 2013. "Governance, regulation and innovation: new perspectives and evidence," Chapters,in: Governance, Regulation and Innovation, chapter 1, pages 1-22 Edward Elgar Publishing.
    7. Ugur, Mehmet, 2012. "Market Power, Governance and Innovation: OECD Evidence," MPRA Paper 44141, University Library of Munich, Germany.
    8. Dasgupta, Shouro & De Cian, Enrica, 2016. "Institutions and the Environment: Existing Evidence and Future Directions," MITP: Mitigation, Innovation,and Transformation Pathways 240747, Fondazione Eni Enrico Mattei (FEEM).
    9. Kamilia Loukil, 2016. "Foreign Direct Investment And Technological Innovation In Developing Countries," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 31-40, September.
    10. d'Agostino, Giorgio & Scarlato, Margherita, 2016. "Institutions, Innovation and Economic Growth in European Countries," MPRA Paper 72427, University Library of Munich, Germany.
    11. Wang, Cong, 2013. "Can institutions explain cross country differences in innovative activity?," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 128-145.
    12. Dias, Joilson & Tebaldi, Edinaldo, 2012. "Institutions, human capital, and growth: The institutional mechanism," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 300-312.
    13. repec:eee:rujoec:v:2:y:2016:i:4:p:349-374 is not listed on IDEAS
    14. Barasa, Laura & Knoben, Joris & Vermeulen, Patrick & Kimuyu, Peter & Kinyanjui, Bethuel, 2017. "Institutions, resources and innovation in East Africa: A firm level approach," Research Policy, Elsevier, vol. 46(1), pages 280-291.
    15. Ugur, Mehmet, 2012. "Governance, Regulation and Innovation: Introducing New Studies," MPRA Paper 44151, University Library of Munich, Germany, revised Jan 2013.
    16. repec:jed:journl:v:43:y:2018:i:1:p:1-27 is not listed on IDEAS

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