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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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    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, Shouro & De Cian, Enrica & Verdolini, Elena, 2016. "The Political Economy of Energy Innovation," MITP: Mitigation, Innovation,and Transformation Pathways 234939, Fondazione Eni Enrico Mattei (FEEM).
    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.

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