Table 3. Main analysis of the effect of academic freedom (AF) on innovation quality (forward citations received in the first 3 years).
| Model | (1) | (2) | (3) | (4) | (5) | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Dependent variable | Forward citationst+5 (ln) | Forward citationst+5 (ln) | Forward citationst+5 (ln) | Forward citationst+5 (ln) | Forward citationst+5 (ln) | |||||
| Statistic | Coeff. | (SE) | Coeff. | (SE) | Coeff. | (SE) | Coeff. | (SE) | Coeff. | (SE) |
| Indepdenent variables | ||||||||||
| AF (z) | 0.258 | (0.022)*** | ||||||||
| AF (IV: Democracyt-5, z) | 1.149 | (0.057)*** | ||||||||
| AF (IV: Democracy stockt-10, z) | 1.126 | (0.053)*** | ||||||||
| AF (IV: AFt-5, z) | 0.431 | (0.031)*** | ||||||||
| AF (IV: AF stockt-10, z) | 0.436 | (0.031)*** | ||||||||
| Controls | ||||||||||
| Patent applications (ln) | Yes | Yes | Yes | Yes | Yes | |||||
| Year/country dummies | Yes | Yes | Yes | Yes | Yes | |||||
| Countries (observations) | 157 | (11,921) | 157 | (11,338) | 157 | (10,786) | 156 | (11,099) | 156 | (10,285) |
| R2 (R2 adjusted) | 0.642 | (0.633) | 0.607 | (0.598) | 0.631 | (0.621) | 0.659 | (0.650) | 0.680 | (0.671) |
| MOP weak instrument test (F) | - | 2,114.24 | (τ < 0.05) | 3,610.46 | (τ < 0.05) | 5,313.93 | (τ < 0.05) | 10,607.19 | (τ < 0.05) | |
Notes: The estimates in Model (1) are obtained from a pooled OLS regression. The estimates in Models (2)–(5) come from 2SLS regressions. All variables are described in Table 1. Robust standard errors in parentheses. The MOP weak instrument is based on [53], as implemented in STATA’s weakivtest command. High F-values indicate a strong instrument.
* p < 0.10
** p < 0.05
*** p < 0.01.