2020/01/23 by Mario Coccia, Coccia, Mario
Economics, Econometrics and Finance · #Economic Development and Digital Transformation #Economic Growth and Productivity #Economic and Technological Innovation #econ.GN #q-fin.EC
paper · pdf · doi:10.48550/arxiv.2001.08432
41 pages, 7 tables, 8 figures
arxiv created 2020/01/23 · arxiv updated 2020/01/24
Political systems shape institutions and govern institutional change supporting economic performance, production and diffusion of technological innovation. This study shows, using global data of countries, that institutional change, based on a progressive democratization of countries, is a driving force of inventions, adoption and diffusion of innovations in society. The relation between technological innovation and level of democracy can be explained with following factors: higher economic freedom in society, effective regulation, higher economic and political stability, higher investments in R&D and higher education, good economic governance and higher level of education system for training high-skilled human resources. Overall, then, the positive associations between institutional change, based on a process of democratization, and paths of technological innovation can sustain best practices of political economy for the development of economies in the presence of globalization and geographical expansion of markets.