Does democracy cause innovation? An empirical test of the popper hypothesis

•Popper’s hypothesis is empirically tested using worldwide panel data.•Different methods are employed to test the causality link between democracy and innovation.•Popper’s hypothesis is not supported by the empirical results.•The results are robust to various innovation measurements and model specif...

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Published inResearch policy Vol. 46; no. 7; pp. 1272 - 1283
Main Authors Gao, Yanyan, Zang, Leizhen, Roth, Antoine, Wang, Puqu
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.09.2017
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Abstract •Popper’s hypothesis is empirically tested using worldwide panel data.•Different methods are employed to test the causality link between democracy and innovation.•Popper’s hypothesis is not supported by the empirical results.•The results are robust to various innovation measurements and model specifications. Democratic countries produce higher levels of innovation than autocratic ones, but does democratization itself lead to innovation growth either in the short or in the long run? The existing literature has extensively examined the relationship between democracy and growth but seldom explored the effect of democracy on innovation, which might be an important channel through which democracy contributes to economic growth. This article aims to fill this gap and contribute to the long-standing debate on the relationship between democracy and innovation by offering empirical evidence based on a data set covering 156 countries between 1964 and 2010. The results from the difference-in-differences method show that democracy itself has no direct positive effect on innovation measured with patent counts, patent citations and patent originality.
AbstractList •Popper’s hypothesis is empirically tested using worldwide panel data.•Different methods are employed to test the causality link between democracy and innovation.•Popper’s hypothesis is not supported by the empirical results.•The results are robust to various innovation measurements and model specifications. Democratic countries produce higher levels of innovation than autocratic ones, but does democratization itself lead to innovation growth either in the short or in the long run? The existing literature has extensively examined the relationship between democracy and growth but seldom explored the effect of democracy on innovation, which might be an important channel through which democracy contributes to economic growth. This article aims to fill this gap and contribute to the long-standing debate on the relationship between democracy and innovation by offering empirical evidence based on a data set covering 156 countries between 1964 and 2010. The results from the difference-in-differences method show that democracy itself has no direct positive effect on innovation measured with patent counts, patent citations and patent originality.
Author Gao, Yanyan
Wang, Puqu
Roth, Antoine
Zang, Leizhen
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  surname: Gao
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  givenname: Leizhen
  surname: Zang
  fullname: Zang, Leizhen
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  givenname: Antoine
  surname: Roth
  fullname: Roth, Antoine
  email: antoine.roth@gmail.com
  organization: Graduate Schools for Law and Politics, University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo, 113-0033, Japan
– sequence: 4
  givenname: Puqu
  surname: Wang
  fullname: Wang, Puqu
  email: wpq2011@pku.edu.cn
  organization: Institute of State Governance Studies, Peking University,No. 5 Yiheyuan Road, Haidian District, Beijing, 100871, PR China
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Snippet •Popper’s hypothesis is empirically tested using worldwide panel data.•Different methods are employed to test the causality link between democracy and...
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SubjectTerms Democracy
DID method
Innovation
Patent data
Title Does democracy cause innovation? An empirical test of the popper hypothesis
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