The capacity for innovation in a society is closely linked to the extent of academic freedom. An international research team, including members from the Technical University of Munich (TUM), has illustrated this connection for the first time. They examined patent applications and citations from approximately 160 countries over the period of 1900 to 2015, correlating these findings with indicators from the Academic Freedom Index. Given the decline in academic freedom observed globally in the last decade, the researchers anticipate a reduction in innovative output.
In recent years, scientists in various nations have seen a decrease in academic freedom. This trend has drawn criticism based on fundamental values. However, prior to this study, there had been no research into whether the level of academic freedom affects a society’s capacity to generate innovations.
This international research team has, for the first time, explored the connection between academic freedom and innovation output. They utilized patent applications and citations as measures for both the quantity and quality of innovations. Their analysis spanned from 1900 to 2015 across 157 countries, working with two extensive and reputable datasets: the V-Dem Dataset from the V-Dem Institute at the University of Gothenburg, which includes various democracy indicators dating back to 1789, including the freedom of science represented in the Academic Freedom Index. Additionally, data on patent applications and citations were sourced from the PATSTAT database managed by the European Patent Office.
“Concerning indicators for many nations”
The findings indicate that greater freedoms in scientific work lead to increased innovation. As academic freedom improves, increases in patent applications and subsequent patent citations follow suit.
However, the global landscape for academic freedom witnessed its first significant decline in the last century from 2011 to 2021. This trend is evident even in the group of 25 countries with the most robust scientific bases. The research team calculated the consequences of this decline over that decade, estimating a global decrease of 4-6% in innovative capacity, with leading countries facing a reduction as high as 5-8%,” stated Paul Momtaz, a Professor of Entrepreneurial Finance at TUM.
“These findings are deeply concerning for many nations. Limitations on academic freedom also restrict the potential to develop new technologies and processes, thereby stalling progress and economic growth,” Paul Momtaz expressed. “This trend is apparent not only in authoritarian regimes but is increasingly noticeable in democratic nations where populist movements have gained traction.”
Various robustness checks validate the findings
The researchers conducted numerous checks to ensure the reliability of the relationship between academic freedom and innovative output. For instance, they examined whether the observed correlation stemmed specifically from academic freedom rather than general societal freedoms. They also ruled out the possibility of reverse causality, where additional academic freedom might only be granted when innovative output is perceived to be low. The study’s findings remained consistent when focused solely on countries with either very high or very low patent application rates, or when the analysis was restricted to the post-1980 period, or when examining specific aspects of academic freedom.
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Researchers from the Technical University of Munich, Indiana University, the University of Luxembourg, the Polytechnic University of Milan, and the University of Bergamo contributed to this study.
