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

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  • Koçak, Emrah

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

Suggested Citation

  • Koçak, Emrah, 2017. "Does institutional quality drive innovation? Evidence from system-GMM estimates," MPRA Paper 90299, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:90299
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    References listed on IDEAS

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    Cited by:

    1. Chi, Meiqing & Muhammad, Sulaman & Khan, Zeeshan & Ali, Shahid & Li, Rita Yi Man, 2021. "Is centralization killing innovation? The success story of technological innovation in fiscally decentralized countries," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    2. Rudi Purwono & Mohammad Zeqi Yasin & M. Khoerul Mubin, 2020. "Explaining regional inflation programmes in Indonesia: Does inflation rate converge?," Economic Change and Restructuring, Springer, vol. 53(4), pages 571-590, November.
    3. Wang, Chenguang & Qiao, Cuixia & Ahmed, Rahil Irfan & Kirikkaleli, Dervis, 2021. "Institutional Quality, Bank Finance and Technological Innovation: A way forward for Fourth Industrial Revolution in BRICS Economies," Technological Forecasting and Social Change, Elsevier, vol. 163(C).

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    More about this item

    Keywords

    Institutions; Innovation; Panel data; System-GMM.;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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