Do weak institutions undermine global innovation production efficiency?

German Blanco and Rajeev Goel

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper focuses on institutional influences on innovation efficiency across countries. Whereas various causes and effects of technological change have been examined, empirical investigations of the efficiency involved in innovation production are relatively few. Using data on a large sample of nations over 2018–2020 and considering corruption, regulatory quality, and state fragility as alternative institutional dimensions, our results show that greater corruption facilitates (“greases”) efficiency in the production of innovations. This is also the case with improvements in regulatory quality, while greater state fragility increases inefficiency. These findings for the overall sample are somewhat different for the OECD and non-OECD subsamples, although the greasing effect of corruption remains throughout. A robustness check with patent protection and government size as alternative institutional dimensions is also conducted.

Keywords: Patents; Innovation; Stochastic frontier analysis; Knowledge; Corruption; Institutions; Government; Uncertainty; Efficiency; Regulatory quality; State fragility (search for similar items in EconPapers)
JEL-codes: C20 K42 O31 O33 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Do weak institutions undermine global innovation production efficiency? (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:319918

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