The optimism effect on country productivity and innovation activities
This study focuses on how optimism translates into innovation outcomes. While the link has been established at a microeconomic level, its translation to an aggregate economic effect is still an open question. Empirical analysis draws from a yearly sample of 42 (mainly OECD) countries between 2000 an...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-10-01
|
| Series: | Journal of Innovation & Knowledge |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X24001045 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850167801981960192 |
|---|---|
| author | Daniel Mahn Cong Wang Danielle Kent Chris Heaton |
| author_facet | Daniel Mahn Cong Wang Danielle Kent Chris Heaton |
| author_sort | Daniel Mahn |
| collection | DOAJ |
| description | This study focuses on how optimism translates into innovation outcomes. While the link has been established at a microeconomic level, its translation to an aggregate economic effect is still an open question. Empirical analysis draws from a yearly sample of 42 (mainly OECD) countries between 2000 and 2020 to test the effect of economic optimism on R&D measures from both the consumer's and producer's points of view at the aggregate level. Using modern econometric techniques that address potential endogeneity issues, the results suggest that economic optimism supports an increase in innovation activity and economic performance but not an increase in innovation outcomes, such as more patent production. The implication is that an economically optimistic environment is an important contribution to a nation's entrepreneurial ecosystem. This novel insight shows that firms need not specifically recruit optimistic individuals to reap the benefits of the optimism effect. Policies that encourage economic optimism can orchestrate an environment in which the benefits of the optimism effect are realized, independent of the individual personality traits of its citizens. |
| format | Article |
| id | doaj-art-c84f94e00b6648ceb4efada2fd97cbf2 |
| institution | OA Journals |
| issn | 2444-569X |
| language | English |
| publishDate | 2024-10-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj-art-c84f94e00b6648ceb4efada2fd97cbf22025-08-20T02:21:07ZengElsevierJournal of Innovation & Knowledge2444-569X2024-10-019410056510.1016/j.jik.2024.100565The optimism effect on country productivity and innovation activitiesDaniel Mahn0Cong Wang1Danielle Kent2Chris Heaton3Department of Industrial Engineering, University of Concepcion, Edmundo Larenas 219, Concepcion, Chile; Facultad de Economía y Negocios, Universidad Del Desarrollo, Santiago, Chile; Department of Economics, Macquarie University, 4 Eastern Road, North Ryde, NSW, 2109, Australia; Corresponding author at: Department of Industrial Engineering, University of Concepcion, Edmundo Larenas 219, Concepcion, Chile.Department of Economics, Macquarie University, 4 Eastern Road, North Ryde, NSW, 2109, AustraliaDepartment of Economics, Macquarie University, 4 Eastern Road, North Ryde, NSW, 2109, Australia; Discipline of Finance, The University of Sydney Business School, The University of Sydney, Sydney, AustraliaDepartment of Economics, Macquarie University, 4 Eastern Road, North Ryde, NSW, 2109, AustraliaThis study focuses on how optimism translates into innovation outcomes. While the link has been established at a microeconomic level, its translation to an aggregate economic effect is still an open question. Empirical analysis draws from a yearly sample of 42 (mainly OECD) countries between 2000 and 2020 to test the effect of economic optimism on R&D measures from both the consumer's and producer's points of view at the aggregate level. Using modern econometric techniques that address potential endogeneity issues, the results suggest that economic optimism supports an increase in innovation activity and economic performance but not an increase in innovation outcomes, such as more patent production. The implication is that an economically optimistic environment is an important contribution to a nation's entrepreneurial ecosystem. This novel insight shows that firms need not specifically recruit optimistic individuals to reap the benefits of the optimism effect. Policies that encourage economic optimism can orchestrate an environment in which the benefits of the optimism effect are realized, independent of the individual personality traits of its citizens.http://www.sciencedirect.com/science/article/pii/S2444569X24001045E70G40O30 |
| spellingShingle | Daniel Mahn Cong Wang Danielle Kent Chris Heaton The optimism effect on country productivity and innovation activities Journal of Innovation & Knowledge E70 G40 O30 |
| title | The optimism effect on country productivity and innovation activities |
| title_full | The optimism effect on country productivity and innovation activities |
| title_fullStr | The optimism effect on country productivity and innovation activities |
| title_full_unstemmed | The optimism effect on country productivity and innovation activities |
| title_short | The optimism effect on country productivity and innovation activities |
| title_sort | optimism effect on country productivity and innovation activities |
| topic | E70 G40 O30 |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X24001045 |
| work_keys_str_mv | AT danielmahn theoptimismeffectoncountryproductivityandinnovationactivities AT congwang theoptimismeffectoncountryproductivityandinnovationactivities AT daniellekent theoptimismeffectoncountryproductivityandinnovationactivities AT chrisheaton theoptimismeffectoncountryproductivityandinnovationactivities AT danielmahn optimismeffectoncountryproductivityandinnovationactivities AT congwang optimismeffectoncountryproductivityandinnovationactivities AT daniellekent optimismeffectoncountryproductivityandinnovationactivities AT chrisheaton optimismeffectoncountryproductivityandinnovationactivities |