Does institutional quality drive innovation? Evidence from system-GMM estimates

Koçak, Emrah (2017): Does institutional quality drive innovation? Evidence from system-GMM estimates. Published in: The Empirical Economics Letters , Vol. 12, No. 16 (15 December 2017): pp. 1367-1374.

Abstract

This paper investigates the influence of institutional quality on innovation performance in developing countries by employing annual data from 1997-2014. The system-generalized method of moments (GMM) is used as the empirical method. Estimation results reveal that bureaucratic quality, government stability, democratic accountability, and law and order indicators that represent institutional quality have had a positive influence on innovation performance. These results indicate that improving the institutional structure in the developing countries would have a significant contribution to the innovation process and hence economic development

• Item Type: MPRA Paper
• Language: English
• Keywords: Institutions, Innovation, Panel data, System-GMM.
• Subjects: D - Microeconomics > D0 - General > D02 - Institutions: Design, Formation, Operations, and Impact; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation

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