Applied economic model for an innovation growth

Josheski, Dushko and Magdinceva-Sopova, Marija (2013): Applied economic model for an innovation growth.

Abstract

The issue of institutional support for innovations in Latin American countries has been examined in this paper. We use aprirori theoretical knowledge on this issue in order to derive one econometric model out of a theoretical framework. The influence on human capital variable on innovations growth it is straightforward. However, the sign on the institutions variable is ambiguous. Defective institutions in Latin American countries resulted in regional’s social conflicts which were severe, and the ability of social groups to use formal political institutions to resolve, or mitigate this conflicts has been much less effective. The lack of democracy if we may say, deteriorates the entrepreneurial spirit and hence institutions may as well turn not to be supportive of innovations.

• Item Type: MPRA Paper
• Language: English
• Keywords: Innovations, human capital, quality of institutions, Latin America
• Subjects: E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean

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