 Exploring the potential of institutional quality in determining technological innovationNoman Arshed, Nadia Hanif, Osama Aziz and Martin Croteau Technology in Society, 2022, vol. 68, issue C Abstract: Having better institutions facilitates many aspects of the economy. But this increase, assuming other factors, may lead to a gradual decrease in its effectiveness to promote innovation. The preposition behind this is that mature institutions increase businesses' compliance costs. Governments should try to find an appropriate intervention approach to promote innovation. This study posits to evaluate the non-linear effect of development in institutional quality on innovation. Panel FGLS model confirms the Innovation – Institutional quality Kuznets curve for four sets of countries segregated according to their level of development as very high HDI, high HDI, medium HDI, and low HDI. The study finds that all sets of countries witnessing an inverted U-relationship between development in institutional quality and innovation, pointing to the preposition of burdening effect of regulations. Further, this burden is eased with the increase in the economic development level as low HDI country's curve bends higher as compared to very high HDI countries. Further practical implications are discussed. Keywords: Organization of corruption; Institution theory; Innovation; Panel data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:68:y:2022:i:c:s0160791x21003341 DOI: 10.1016/j.techsoc.2021.101859 Access Statistics for this article Technology in Society is currently edited by Charla Griffy-Brown More articles in Technology in Society from Elsevier |
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