Governance content, financial risk and innovation: A panel data analysis

Abstract

The effects of governance content characteristics, financial risk, financial development, and innovation infrastructure variables on the size of patent applications in advanced nations during the post-crisis period are examined in this research. For the 2010-2015 period, a panel dataset of 29 advanced economies was employed. The paper uses a Poisson and a Negative Binomial framework to accommodate national heterogeneity and dispersion concerns. According to the estimation results, financial development and financial risk index benefit patent applications, research and development expenditure, intellectual property rights, and gross fixed capital creation. In addition, according to this study, controlling corruption and upholding the rule of law boost innovation, whereas regulatory quality inhibits innovation in advanced economies.