Determinants of Innovative Activities: Evidence from Europe and Central Asia Region

Chi Keung Marco Lau, Fu Steve Yang, Zhe Zhang, Vincent K. K. Leung

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

Recent studies in the innovation literature show that Foreign Direct Investment (FDI) enhances innovations in recipient countries through spill-over effects. In this paper we extend the existing literature by incorporating the corruption index in the estimation procedure. Using a cross-country analysis from the Europe and Central Asia (ECA) region, covering 57 countries over the period of 1995–2010, we find no evidence of FDI spill-over effects on innovations, when corruption is endogenously modelled in the regression. Interestingly, we find that corruption and expenditure on education sector are positively related to the number of patents applications, suggesting anti-corruption programs encourage innovations that promote economic growth. Our study shed light on the national innovations and anti-corruption programs.
Original languageEnglish
Article number1550004
JournalSingapore Economic Review
Volume60
Issue number1
DOIs
Publication statusPublished - 26 Feb 2015
Externally publishedYes

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