Governance and Innovation Commercialization Nexus: Comparative Evidence of Democracies versus Autocracies on Global High-Tech Export Performance

Abstract

This study critically examines the comparative role of political governance systems i.e democracies versus autocracies on the commercialization of innovations in driving high-tech exports globally. Using dynamic panel data of 104 countries from 2001 to 2015, the study employs advanced econometric techniques, including GMM and 2SLS estimations, to mitigate endogeneity concerns. Results reveal that autocracies exert a significantly positive long-term influence on high-tech exports, particularly in the Europe and Central Asia (ECA) region, where they contribute to a sustained growth rate of approximately 50-60% over fifteen years. Conversely, democracies demonstrate a statistically significant negative impact, largely attributed to electoral cycles, policy discontinuity, and fragmented decision-making. Key drivers influencing this relationship include R&D intensity, intellectual property frameworks, and economic openness. Limitations involve data availability for certain emerging economies and inherent measurement challenges in governance classification. Policy recommendations underscore the need for democracies to enhance institutional stability and foster long-term industrial strategies to promote innovation-driven exports. The findings provide novel insights into institutional governance frameworks relevant for achieving SDG 9 (Industry, Innovation & Infrastructure) and SDG 16 (Peace, Justice & Strong Institutions). Future research should explore firm-level dynamics and sector-specific governance impacts across varying developmental stages.