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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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