Institutional quality and innovation performance: evidence from Italy.

The recognized importance of innovation for long-run economic growth has raised scholars' interest in the mechanisms explaining regional innovative performance. In particular, renewed attention has been paid to the role of institutions as a social filter that can foster innovation. By adopting a holistic theoretical approach, the paper adds to this literature by investigating the relationship between the institutional quality and innovation capacity of Italian provinces. The findings show a positive effect associated with the quality of institutions by means of three important channels: government effectiveness, regulatory quality, and voice and accountability. [ABSTRACT FROM AUTHOR]