An Empirical Analysis of the Relationship Between Inequality and Innovation in a Schumpeterian Framework

Ozan Hatipoglu

MPRA Paper from University Library of Munich, Germany

Abstract: I empirically investigate the non-linear relationship between inequality and innovation in a Schumpeterian setup where growth is expressed by the rate of innovations. In this framework income distribution plays a role in determining the dynamic market sizes for innovators and therefore is a major determinant of growth. By using two new cross-country inequality data sets, I find support for an inverted U-shaped relationship between inequality and innovative activities. This result is robust to two common inequality definitions and several parametric and non-parametric estimation procedures.

Keywords: inequality; innovation; patents (search for similar items in EconPapers)
JEL-codes: O15 O31 (search for similar items in EconPapers)
Date: 2008-03-20
New Economics Papers: this item is included in nep-com, nep-cse and nep-ino
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: An Empirical Analysis of the Relationship Between Inequality and Innovation in a Schumpeterian Framework (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:7856

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