Effects of the institutional change based on democratization on origin and diffusion of technological innovation

Document pages: 42 pages

Abstract: Political systems shape institutions and govern institutional changesupporting economic performance, production and diffusion of technologicalinnovation. This study shows, using global data of countries, thatinstitutional change, based on a progressive democratization of countries, is adriving force of inventions, adoption and diffusion of innovations in society.The relation between technological innovation and level of democracy can beexplained with following factors: higher economic freedom in society, effectiveregulation, higher economic and political stability, higher investments in R&Dand higher education, good economic governance and higher level of educationsystem for training high-skilled human resources. Overall, then, the positiveassociations between institutional change, based on a process ofdemocratization, and paths of technological innovation can sustain bestpractices of political economy for the development of economies in the presenceof globalization and geographical expansion of markets.