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Democratization is the determinant of technological change

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Abstract

The purpose of this paper is to analyze the relationship between democracy and technological innovation. The primary findings are that most free countries, measured with liberal, participatory, and constitutional democracy index, have higher technological innovation than less free and more autocratic countries, so that the former have a higher interaction among social, economic and innovation systems with fruitful effects on economic growth and the wealth of nations. In fact “democracy richness” in these countries displays a higher rate of technological innovation. In addition, democratization is an antecedent process (cause) to technological innovation (effect), which is a major wellknown determinant of economic growth. These findings lead to the conclusion that policy makers need to be cognizant of positive association between democratization and technological innovation to sustain modern economic growth and future technological progress in view of the accelerating globalization.

Suggested Citation

  • Mario Coccia, 2008. "Democratization is the determinant of technological change," CERIS Working Paper 200806, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    • Handle: RePEc:csc:cerisp:200806
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    More about this item

    Keywords

    Democratization; Technological Innovation; Patents; Royalty Licenses Fee; Economic Grow;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General

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