DOES DEMOCRACY SPUR TECHNOLOGICAL INNOVATION

Abstract

Exploring the factors that influence technological innovation is a fundamental area of research within the field of technological change and growth theory. This study aims to analyze the connection between political factors -specifically, democracy- and innovation across 101 countries from 1997 to 2018. The findings of the analysis indicate that democracy plays a positive role in promoting innovation. This conclusion is supported by various democracy indices and innovation indicators, such as the number of patent registrations with the USPTO and patent declarations with WIPO. Moreover, even within democratic nations, certain characteristics have been identified as contributing to higher levels of innovation performance. Countries with a majority-rule system, lower corruption levels, and stronger protection of property rights tend to exhibit greater innovation. Considering the ongoing hegemonic power struggle between the United States and China -a struggle that has evolved into a technology war centered around technological innovation, starting around the time of the 2008 global financial crisis- it has become increasingly important to investigate the relationship between democracy and innovation. Research in this area is expected to yield significant insights from both policy and strategic perspectives. © (2024), (Economic Research Institute of Chung-Ang University). All rights reserved.