This paper looks at the link between the quality of economic institutions and innovation, and innovation and growth. We construct a measure of the innovation content of individual manufacturing industries and show that countries with stronger economic institutions specialize in more...

Most conventional macroeconomic measures of innovation, such as research and development (R&D) spending or patenting, focus on frontier innovation in contrast to the adoption and adaptation of existing technologies. To capture technology adoption at the country level, this paper exploits a novel...