The Impact of Institutions on Innovation
|Speaker:||Jean-Marie Meier, University of Texas in Dallas|
|Date:||Tuesday 5 June 2018|
|Location:||Pearson Teaching Room|
We study the impact of inclusive institutions on innovation using novel, hand-collected, county-level data for Imperial Germany. Exploiting the timing and geography of the French occupation of different German regions after the French Revolution as an instrument for institutional quality, we find that the number of patents per capita was more than twice as high in counties with the longest occupation as in unoccupied counties. The impact of institutions on innovation is amplified in counties with a highly developed banking sector, suggesting that financial development and inclusive institutions are complementary inputs in the creation of innovation.