From Theory to Practice: Examining the True Impact of Institutional Quality on Innovation Commercialization

Abstract

Does better corruption controls as institutional quality measure affect commercialization of innovation? Institutional quality from corruption control perspective is very important to be considered for making strong strategic policies favorable for innovation commercialization. Using panel data consists of 15-year time span (2001-2015) covering 143 countries, initial regression estimates with robust check along with fixed effects presents that better corruption controls are positively effective in promoting innovation commercialization in the country which is further verified by using GMM estimates. Our preferred specifications imply that corruption effects on innovation commercialization is worse in Middle East and North American (MENA) regions which is around negative 65% especially in upper middle income and Catholic countries. Apart from the exports of high-tech products, other demand and supply side contributors of innovation commercialization are also important to account for. While improving the research and development aspects, the policy makers must also have to plan strategically for improving these channels which may help in improving the institutional quality in the country including investment in improving the grass root literacy levels, flexible facilities for entrepreneurial incubators, and optimal utilization of population growth with urbanization measures in the country.