Innovation Policy: Determinants of Technological Innovation

Development of Technology is one of the main factors of political
change of the modem world. A technological change could change
nature and structure of political arrangements of the society. This
restructuring of the society could happen by economic and
professional change, by creating new division of labor, by creating
new classes and new resources, and so on. In this article, first of all, a
definition of innovation and distinction between invention and
innovation is elaborated. At the second part of the article a review of
theoretical literature is presented. And at the final part of the article
the result of the statistical analysis is presented. The results show that
institutional variables are more important to explain innovation.