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The impact of institutions on innovation

Author

Listed:
  • Alexander Donges

    (University of Mannheim)

  • Jean Marie Meier

    (University of Texas at Dallas)

  • Rui Silva

    (London Business School)

Abstract

"We study the impact of inclusive institutions on innovation using novel, hand- collected, county-level data for Imperial Germany. We use the timing and geography of the French occupation of different German regions after the French Revolution as an instrument for institutional quality. We find that the number of patents per capita was more than twice as high in counties with the longest occupation as in unoccupied counties. The impact of institutions on innovation is amplified in counties with a devel- oped banking sector, suggesting that financial development and inclusive institutions are complements in the production of innovation."

Suggested Citation

  • Alexander Donges & Jean Marie Meier & Rui Silva, 2017. "The impact of institutions on innovation," Working Papers 17023, Economic History Society.
    • Handle: RePEc:ehs:wpaper:17023
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    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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