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Economic Innovations Depend on Political Innovations: On Deregulating the Political Process

Reiner Eichenberger
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Reiner Eichenberger: University of Fribourg

Chapter 15 in Innovation Clusters and Interregional Competition, 2003, pp 314-328 from Springer

Abstract: Abstract Economic growth and human welfare are spurred by innovations. While this is obvious with respect to economic innovations, political innovations are perhaps even more important. They determine the capability to innovate of the economy as well as the effectiveness of government, which is decisive determinant of competitiveness, be it at the local, regional or national level. Therefore, this contribution focuses on political innovations. It presents a new concept for making the political process more competitive, thus enhancing the government incentives to pursue innovative policies and to promote economic innovations by creating an appropriate institutional environment, e.g., by providing for an effective infrastructure, the quick granting of governmental permits and licenses, low taxes, and by supporting innovation clusters.

Keywords: Public Choice; Political Competition; Direct Democracy; Policy Supplier; Economic Innovation (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-540-24760-9_15

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DOI: 10.1007/978-3-540-24760-9_15

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