Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/cde/cdewps/328.html
   My bibliography  Save this paper

Innovation and Government Bureaucracy

Author

Listed:
  • Sunil Kanwar

    (Department of Economics, Delhi School of Economics)

Abstract
This paper explores the nexus between innovation and bureaucratic performance where we focus on the effect of actual bureaucratic performance, rather than bureaucratic capacity. A conditional difference in differences estimation using an unbalanced panel of nations spanning the period 2004-2018, provides strong evidence that better bureaucratic performance underlies better innovation outcomes, ceteris paribus. At the median stock of knowledge capital, a one-unit improvement in bureaucratic performance raises the patent applications of a sample country by about 651, and ‘international’ patents by about 340, which constitute a 1.8% and 5.5% increase over the sample mean patent applications and sample mean ‘international’ patents, respectively. Second, this effect is heterogenous, with these responses becoming more pronounced at higher percentiles of the knowledge capital stock owned by a country. Thus, at the 95th percentile, a one-unit increase in bureaucratic performance raises patent applications by about 3.3%, and ‘international’ patents by about 6.7%, of their respective sample means. Third, the strong significance of bureaucratic performance for innovation is found to be fairly broad-based across technology groups such as Electrical/Electronics Technology, Professional and Scientific Equipment, Pharmaceuticals, Chemicals, and Machinery (Non-electrical), and is not driven by just one or two of these groups. The results are robust to several robustness checks. Key Words: Innovation, Bureaucratic performance, Nonlinear influence JEL Codes: O34, O38, O43

Suggested Citation

  • Sunil Kanwar, 2022. "Innovation and Government Bureaucracy," Working papers 328, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:328
    as

    Download full text from publisher

    File URL: http://www.cdedse.org/pdf/work328.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gründler, Klaus & Potrafke, Niklas, 2019. "Corruption and economic growth: New empirical evidence," European Journal of Political Economy, Elsevier, vol. 60(C).
    2. Toke S. Aidt, 2009. "Corruption, institutions, and economic development," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(2), pages 271-291, Summer.
    3. David Autor & David Dorn & Gordon H. Hanson & Gary Pisano & Pian Shu, 2020. "Foreign Competition and Domestic Innovation: Evidence from US Patents," American Economic Review: Insights, American Economic Association, vol. 2(3), pages 357-374, September.
    4. Rauch, James E. & Evans, Peter B., 2000. "Bureaucratic structure and bureaucratic performance in less developed countries," Journal of Public Economics, Elsevier, vol. 75(1), pages 49-71, January.
    5. Chen, Yongmin & Puttitanun, Thitima, 2005. "Intellectual property rights and innovation in developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 474-493, December.
    6. Kanwar Sunil & Hall Bronwyn H., 2017. "The Market Value of R&D in Emerging Economies: Evidence from India," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(1), pages 1-22, February.
    7. Jacques Mairesse & Pierre Mohnen, 2005. "The Importance of R&D for Innovation: A Reassessment Using French Survey Data," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 183-197, January.
    8. repec:fth:harver:1473 is not listed on IDEAS
    9. Stefan Sperlich & Raoul Theler, 2015. "Modeling heterogeneity: a praise for varying-coefficient models in causal analysis," Computational Statistics, Springer, vol. 30(3), pages 693-718, September.
    10. Nicholas Bloom & Mirko Draca & John Van Reenen, 2016. "Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(1), pages 87-117.
    11. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    12. Avinash Dixit, 2012. "Bureaucracy, Its Reform and Development," Review of Market Integration, India Development Foundation, vol. 4(2), pages 135-157, August.
    13. Lee G. Branstetter & Raymond Fisman & C. Fritz Foley, 2006. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U. S. Firm-Level Panel Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 321-349.
    14. Leiponen, Aija, 2005. "Skills and innovation," International Journal of Industrial Organization, Elsevier, vol. 23(5-6), pages 303-323, June.
    15. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    16. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    17. Barro, Robert J. & Lee, Jong-Wha, 2015. "Education Matters: Global Schooling Gains from the 19th to the 21st Century," OUP Catalogue, Oxford University Press, number 9780199379231.
    18. Barbosa, Natália & Faria, Ana Paula, 2011. "Innovation across Europe: How important are institutional differences?," Research Policy, Elsevier, vol. 40(9), pages 1157-1169.
    19. Sheryl Winston Smith, 2014. "Follow me to the innovation frontier? Leaders, laggards, and the differential effects of imports and exports on technological innovation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(3), pages 248-274, April.
    20. Rosenberg,Nathan, 1994. "Exploring the Black Box," Cambridge Books, Cambridge University Press, number 9780521459556, September.
    21. Sunil Kanwar, 2012. "Intellectual Property Protection and Technology Licensing: The Case of Developing Countries," Journal of Law and Economics, University of Chicago Press, vol. 55(3), pages 539-564.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. BHARADWAJ, Ashish & KANG, Byeongwoo, 2018. "How does innovation occur in India? Evidence from the JIRICO survey," IIR Working Paper 18-05, Institute of Innovation Research, Hitotsubashi University.
    2. Zheng, Mingbo & Feng, Gen-Fu & Feng, Suling & Yuan, Xuemei, 2019. "The road to innovation vs. the role of globalization: A dynamic quantile investigation," Economic Modelling, Elsevier, vol. 83(C), pages 65-83.
    3. Naghavi, Alireza & Strozzi, Chiara, 2015. "Intellectual property rights, diasporas, and domestic innovation," Journal of International Economics, Elsevier, vol. 96(1), pages 150-161.
    4. García-Vega, María & Kneller, Richard & Stiebale, Joel, 2021. "Labor market reform and innovation: Evidence from Spain," Research Policy, Elsevier, vol. 50(5).
    5. Kevin A. Bryan & Heidi L. Williams, 2021. "Innovation: Market Failures and Public Policies," NBER Working Papers 29173, National Bureau of Economic Research, Inc.
    6. Sweet, Cassandra Mehlig & Eterovic Maggio, Dalibor Sacha, 2015. "Do Stronger Intellectual Property Rights Increase Innovation?," World Development, Elsevier, vol. 66(C), pages 665-677.
    7. Jürgen Janger & Agnes Kügler & Andreas Reinstaller & Fabian Unterlass, 2017. "Austria 2025 – Looking Out For the Frontier(s): Towards a New Framework For Frontier Measurement in Science, Technology and Innovation," WIFO Studies, WIFO, number 59289, February.
    8. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    9. Alireza Naghavi & Chiara Strozzi, 2011. "Intellectual Property Rights, Migration, and Diaspora," Working Papers 2011.60, Fondazione Eni Enrico Mattei.
    10. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2023. "Intellectual property rights protection and trade: An empirical analysis," World Development, Elsevier, vol. 162(C).
    11. Ming Liu & Sumner la Croix, 2013. "A Cross-Country Index of Intellectual Property Rights in Pharmaceutical Innovations," Working Papers 201313, University of Hawaii at Manoa, Department of Economics.
    12. Anja, Breitwieser & Neil, Foster, 2012. "Intellectual property rights, innovation and technology transfer: a survey," MPRA Paper 36094, University Library of Munich, Germany.
    13. Sunil Kanwar, 2013. "Innovation, Productivity and IPRs," Working papers 230, Centre for Development Economics, Delhi School of Economics.
    14. Hudson, John & Minea, Alexandru, 2013. "Innovation, Intellectual Property Rights, and Economic Development: A Unified Empirical Investigation," World Development, Elsevier, vol. 46(C), pages 66-78.
    15. Chen, Ji & Wu, Liudan & Hao, Lili & Yu, Xiao & Streimikiene, Dalia, 2024. "Does the import of green products encourage green technology innovation? Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    16. Liu, Qing & Lu, Ruosi & Lu, Yi & Luong, Tuan Anh, 2021. "Import competition and firm innovation: Evidence from China," Journal of Development Economics, Elsevier, vol. 151(C).
    17. Matthias Siller & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2015. "Measuring regional innovation in one dimension: More lost than gained?," Working Papers 2015-14, Faculty of Economics and Statistics, Universität Innsbruck.
    18. Huang, Can & Jacob, Jojo, 2014. "Determinants of quadic patenting: Market access, imitative threat, competition and strength of intellectual property rights," Technological Forecasting and Social Change, Elsevier, vol. 85(C), pages 4-16.
    19. Lybbert, Travis J. & Zolas, Nikolas J., 2014. "Getting patents and economic data to speak to each other: An ‘Algorithmic Links with Probabilities’ approach for joint analyses of patenting and economic activity," Research Policy, Elsevier, vol. 43(3), pages 530-542.
    20. Nicholas Bloom & Paul Romer & Stephen J Terry & John Van Reenen, 2021. "Trapped Factors and China’s Impact on Global Growth [Competition and innovation: an inverted-U relationship]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 156-191.

    More about this item

    Keywords

    innovation; bureaucratic performance; nonlinear influence jel codes: o34; o38; o43;
    All these keywords.

    JEL classification:

    • 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
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cde:cdewps:328. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sanjeev Sharma (email available below). General contact details of provider: https://edirc.repec.org/data/cdudein.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.