Do institutional quality and human capital matter for innovation in case of Asian region?

Abstract

The primary aim of the study is to investigate the role of institutional quality and human capital on innovation in the case of Asian economies. By utilizing annual data from 39 Asian countries spanning over 2000 to 2021, we find that institutional quality and human capital are the principal drivers of innovation. Further, the study investigates by distinguishing them into resident and non-resident patent applications, which show similar results. These findings highlight the significance of prioritizing these key factors to promote innovation activities in Asian countries.

Keywords

• Innovation
• Institutional quality
• Human capital
• Panel data model
• Asian economies