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The impact of freedom on economic growth has attracted significant attention from researchers and policy makers around the globe. Besides notions of economic freedom, a rapidly growing body of literature stresses the role of personal freedoms and tolerance. It is argued that tolerance is essential for innovation because its creates an open environment where creativity and knowledge spillovers. However, mixed empirical evidence suggests that the relationship between tolerance and freedom is more nuanced towards additional social factors, such as the role of trust and other institutions. This paper re-investigates whether and to which extent notions of social and institutional trust affect the impact of tolerance on innovation using an original data set spanning three broad regions of the global and the 50 US states and 31 Chinese regions. Our findings support that tolerance and trust play an important role in stimulating innovation performance, however, the exact nature of the relationships is influenced by economic development. Our study fits into current debate about the role of sociocultural and institutional underpinnings in national innovation systems. As well as it aims to contribute to the almost currently re-starting debate about the influence of freedom and the advantage and disadvantages of diversity on economic performance. [ABSTRACT FROM AUTHOR]

Regional prosperity increasingly depends on a region's capacity to have command over the production of ideas. Measuring the production of ideas with patents, the objective of this paper is to analyze how the number of utility patents granted to inventors in U.S. States in different technologies changed between 1997 and 2007 and how States took advantage of the new opportunities and adapted to the changing technology landscape. The paper uses shift-share analysis, traditionally used in employment studies, for analyzing change in patents by technology categories developed by the NBER. The shift-share results show that only a few states were able to take advantage of the information technology driven increases in patents. California dominates in patent production and may be providing spillover benefits to neighboring states. The shift-share decompositions are used as variables in a fixed-effect panel-regression model of state economic growth. The regression results show that the shift-share decompositions provide statistically significant information in explaining growth after accounting for a State's stock of patents, suggesting that States should concentrate on effective ways to boost their stock of knowledge in rapidly growing technologies to improve state economic growth. [ABSTRACT FROM AUTHOR]

Social enterprise and innovation are inextricably linked in the literature (Chell et al. in Entrepr Reg Dev 22(6):485-493, 2010; Dees in Harv Bus Rev 76:54, 1998; Light in Stanf Soc Innov Rev 4(3):47-51, 2006). To date, research on social enterprise innovation has predominantly focused on micro-level factors, such as the social entrepreneur or organizational attributes. Inversely, recent empirical advances on social enterprise find a country’s social enterprise sector is influenced by macro-institutional factors, including form of government, stage of economic development, culture and model of civil society (Monroe-White and Coskun, in: Shaping social enterprise: understanding institutional context and influence, Emerald Publishing Limited, London, pp 27-48, 2017). Given the link between social enterprise and innovation, recent empirical findings around social enterprise beg the question, do macro-institutional factors similarly predict innovation by social enterprises? This paper uses a hierarchical linear model to examine the influence of national-level variables on social enterprise innovation. Results indicate that similar to social enterprise, macro-institutional factors predict social enterprise innovation. More specifically, macro-institutional factors influence the various types of innovations (product, process and marketing) differently. Moreover, country-level innovation is traditionally defined by economic factors, such as R&D funding and STEM workforce, however, these factors do not help explain social enterprise innovation. Given the social aspects of social enterprise innovation, to capture the full scope of innovation within countries, expanded definitions of national-level innovation should be considered. [ABSTRACT FROM AUTHOR]

This paper studies contribution of capital deepening, technological progress and efficiency improvement to economic growth while focusing on cross-country data, and thus finds itself at the crossroads of growth and development accounting. We take a production frontier approach to growth accounting and choose DEA as the frontier estimation method. To explore the effects that windfall gains from natural resource use have on growth, output data are corrected for pure natural resource rents—part of GDP figures not earned by either labor or capital. Taking into account countries’ natural resources, we find that in the two decades from 1970 to 1990 the average contribution of technological catch-up to per worker output growth was, if anything, negative on the worldwide scale and this trend continued till the mid 1990ies. Analysis of efficiency estimates also shows a possible change over the period of 1970–1990 in the effect of natural resources on country’s performance [ABSTRACT FROM AUTHOR]

This paper addresses the creation of new products in the US pharmaceutical sector, during the second half of the 20th century. We indicate that the continuous increases in population, and thus in the market size of this sector, play a fundamental role in explaining the large creation of new drugs during that period. We also argue that population and market size can be endogenously determined through the impact of drugs over the mortality rate. Hence, these two effects reinforce each other, producing decrements in the mortality rate and increments in the stock of drugs over time. We obtained the set of new molecular entities approved by the FDA during the second half of the 20th century and we decomposed the data in a panel of 15 therapeutic categories over time. Using this data, we tested our hypotheses using different econometric methods. The results support the hypothesis and are consistent across methods. [ABSTRACT FROM AUTHOR]

This paper examines the recent history of State-level policies in the United States for knowledge-based economic development, and identifies an emerging model based on technology creation. This new model goes beyond traditional investments in technology transfer and prioritizes cutting-edge scientific research in economically relevant fields. As research-intensive universities are indispensable for technology creation, these policies have yielded substantial new investments in university science. [ABSTRACT FROM AUTHOR]

Economic theory predicts that the rate of technological growth exerts a positive influence on the real rate of interest. To test this hypothesis, I examine the relationship between the inflation-adjusted yield of the 90-day Treasury-Bill and two measures of innovation: the rate of growth of the stock of patents per worker and R&D spending relative to GDP. As theory predicts, from 1963 to 2008 the rate of interest responds positively to an increase in either measure. The point-estimates imply an elasticity of intertemporal substitution between one and two. The findings suggest that a change in the stance of monetary policy and a wave of innovation both contributed to the rise of real interest rates in the 1980s. [ABSTRACT FROM AUTHOR]

The integration of ideas, methods, and data from diverse disciplines has been a transformative force in science and higher education, attracting policy interventions, program innovations, financial resources, and talented people. Much energy has been invested in producing a new generation of scientists trained to work fluidly across disciplines, sectors, and research problems, yet the success of such investments has been difficult to measure. Using the Integrative Graduate Education and Research Training (IGERT) program of the U.S. National Science Foundation as a strategic research site, we conducted an experiment to determine whether and how the process and products of research of IGERT-trained scientists differ from those of scientists trained in disciplinary graduate programs. Among scientists in the early years of graduate study we found substantial and consistent differences suggesting that interdisciplinary training improved the quality and process of research, but this pattern was equally strongly reversed among students in the latter years of graduate study. Using systematic observation and other data we suggest why this might be so, then discuss the implications of these results for the design and conduct of graduate education and research. [ABSTRACT FROM AUTHOR]