What question did this study set out to answer?

To explore how government effectiveness influences the relationship between R&D spending and patent output across countries.

February 5, 2026Open Access

Institutional Capacity and the Productivity of R&D: Evidence from Patent Outcomes Across Countries

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Examines the influence of government effectiveness on patent production in 111 countries, suggesting improved governance may decrease R&D impact.

To explore how government effectiveness influences the relationship between R&D spending and patent output across countries.
Analyzed panel data from 111 countries from 2000 to 2020.
Employed two-way fixed effects models and System Generalized Method of Moments estimation.
Measured R&D expenditure as a percentage of GDP two years prior to patent applications.
Assessed government effectiveness using a relevant index from the same two-year window.
R&D investment significantly increases patent activity; a 1% increase in R&D correlates to a 39% increase in patents.
The relationship between R&D and government effectiveness is negative and statistically significant.
Nations with weaker institutions experience greater patent growth during capacity development.
Patenting behavior shows considerable persistence, validating path-dependent innovation processes.

Sudarmaji Eka (2026) studied this question.

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February 5, 2026Open Access

View Full Paper

Ask AI

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Authors

Examines the influence of government effectiveness on patent production in 111 countries, suggesting improved governance may decrease R&D impact.

To explore how government effectiveness influences the relationship between R&D spending and patent output across countries.
Analyzed panel data from 111 countries from 2000 to 2020.
Employed two-way fixed effects models and System Generalized Method of Moments estimation.
Measured R&D expenditure as a percentage of GDP two years prior to patent applications.
Assessed government effectiveness using a relevant index from the same two-year window.
R&D investment significantly increases patent activity; a 1% increase in R&D correlates to a 39% increase in patents.
The relationship between R&D and government effectiveness is negative and statistically significant.
Nations with weaker institutions experience greater patent growth during capacity development.
Patenting behavior shows considerable persistence, validating path-dependent innovation processes.

Sudarmaji Eka (2026) studied this question.

View Full Paper

Ask AI

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