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The role of socio-historic factors and income inequality in global innovation

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  • Goel, Rajeev K.
  • Saunoris, James W.

Abstract

In order to better understand why some nations are more innovative than others, this paper considers the influence of socio-historic dimensions of colonialism and income inequality. Using data from 72 nations over the years 1997-2018, we find that ethnic income inequality (along with income inequality) and ethnolinguistic fractionalization of the population reduced the pace of innovation. These findings underscore the role of income distribution and other social factors in facilitating innovation. Furthermore, nations with a colonial past were more innovative, ceteris paribus, whereas nations with long histories (longevity) were no different from others. Finally, we found some support for presidential democracies fostering more innovation.

Suggested Citation

  • Goel, Rajeev K. & Saunoris, James W., 2023. "The role of socio-historic factors and income inequality in global innovation," Open Access Publications from Kiel Institute for the World Economy 307992, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkie:307992
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    More about this item

    Keywords

    innovation; patents; R&D; colonialism; technological change; genetic distance; fractionalization; income inequality; history; path dependence; presidential democracies;
    All these keywords.

    JEL classification:

    • 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
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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