Democratization is the Driving Force for Technological and Economic Change

Abstract

innovation. In primis, the paper shows, through economic history, that democratization is an antecedent process (cause) to technological and economic change (effect). In particular, the primary finding is that democratization is a driving force for technological change: most free countries,measured with liberal, participatory, and constitutional democracy indices, have a higher level of technology than less free and more autocratic countries. In fact, "democracy richness" generates a higher rate of technological innovation with fruitful effects for the well being and wealth of nations. These findings and predictions lead to the conclusion that policy makers need to be cognizant of positive associations between democratization and technological innovation paths in order to support the modern economic growth and future technological progress of countries.

Keywords: Democracy, innovation, economic growth, democratization

JEL Classification: O33, O34, O57, P00