(Are) Institutions More Important Than Innovation?. Issue 2 (3rd April 2021)

• Record Type: Journal Article
• Authors: Josifidis, Kosta; Supic, Novica
• Is Part Of: Journal of economic issues. Volume 55:Issue 2(2021)
• Page Start: 334
• Page End: 341
• Publication Date: 2021-04-03
• Subjects: economic progress -- technological innovation -- progressive institutional changes -- old institutionalism; B52 -- O33 -- O43; Economics -- Periodicals; Economics; Économie politique -- Périodiques; Economie; ECONOMICS; ECONOMIC POLICY; Periodicals; 330.05
• DOI: 10.1080/00213624.2021.1908086
• Languages: English
• ISSNs: 0021-3624

Abstract

Abstract: The aim of this article is to shed more light on the effects of technological innovation on economic progress from the institutionalist perspective. Based on historical data on economic growth and technological changes in the United States, we question the assumption of mainstream economics that innovation, performed by profit-making enterprises, is a key source of productivity growth. The difference between the golden age and the period since suggests that economic progress is primarily determined by a successfully functioning institutional structure and progressive institutional changes.