The Impact of Religious Traditions and Education Levels on Innovation Activity in Countries with Different Income Levels

James Okrah and Alexander N. Nepp

Journal of Applied Economic Research, 2023, vol. 22, issue 2, 216-241

Abstract: It is estimated that over 80% of the world's population identifies with a religious group. Religious beliefs can influence people's attitudes towards science, technology, and progress. Religious institutions can also provide resources and support for innovation. This means that religion has a significant impact on the lives of billions of people. The purpose of the article is to explore the impact of different religious traditions and the level of education of the population on innovative activity in countries with different income levels. The study formulated and confirmed three hypotheses: (1) Different religious institutions influence innovation differently; (2) Spreading of education enhances the positive effect of patent activity while the lack of education, on the contrary, weakens this effect; (3) Growth in religious diversity positively influences patent activity. The authors use panel data for 46 countries for the period between 1996 and 2016 and employ the fixed effects estimation. The results indicate that the spread of education among Protestants changed their attitude to the protection of property rights and, thus, increased the positive influence of the latter on patent activity. The growth of religious diversity, usually associated with greater tolerance in society, strengthens the positive influence of Protestantism. Our findings are consistent with the idea that religious institutions can influence innovation in different ways. Protestantism may be more conducive to innovation because it emphasizes the importance of individual freedom and creativity. Religious diversity may be beneficial for innovation because it can lead to greater tolerance and understanding.

Keywords: innovation; patenting; R&D; property right; religious diversity; religion; Protestant; Catholic; Muslim; education. (search for similar items in EconPapers)
JEL-codes: D31 G20 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:aiy:jnjaer:v:22:y:2023:i:2:p:216-241

DOI: 10.15826/vestnik.2023.22.2.010

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