The road to innovation vs. the role of globalization: A dynamic quantile investigation

This paper investigates the distributional effects of globalization on innovation using 86 countries data from 1986 to 2016. Our results derived from the dynamic panel quantile regression technique show that overall globalization has a positive influence on national innovation in the least innovative countries. Similar evidences are found when utilizing globalization (de jure) and social globalization indices. Subsample analysis shows that globalization leads to better innovation performance in the medium innovative countries among OECD countries. Therefore, our findings contribute to the existing literature in identifying the changing effect of globalization on innovation.