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
paper · pdf · doi:10.48550/arxiv.2001.08432
Political systems shape institutions and govern institutional change\nsupporting economic performance, production and diffusion of technological\ninnovation. This study shows, using global data of countries, that\ninstitutional change, based on a progressive democratization of countries, is a\ndriving force of inventions, adoption and diffusion of innovations in society.\nThe relation between technological innovation and level of democracy can be\nexplained with following factors: higher economic freedom in society, effective\nregulation, higher economic and political stability, higher investments in R&D\nand higher education, good economic governance and higher level of education\nsystem for training high-skilled human resources. Overall, then, the positive\nassociations between institutional change, based on a process of\ndemocratization, and paths of technological innovation can sustain best\npractices of political economy for the development of economies in the presence\nof globalization and geographical expansion of markets.\n