Effects of Connectivity and Freedom on Innovation: An Empirical Test Using Different Data Sources

This paper uses cross country regression analysis on a large sample of countries to look at the hypothesized relationship between country innovation and country connectivity. Regressions are undertaken employing three different measures of innovation, using connectivity as the sole explanatory variable, and using connectivity adjusting for other variables. The analysis of the paper lends support to the proposition that greater connectivity between individuals within countries causes greater innovation within these countries. Regardless of the measure used to capture innovation, connectivity is found to be statistically relevant.