Measuring innovation and institution: the creative economy index


  • Rafał Żelazny University of Economics in Katowice
  • Jacek Pietrucha University of Economics in Katowice



innovations, institutions, creative economy, composite indicator, European Union


Research background: A literature review on innovativeness and institutions pointing to their correlation and the possibility of their joint examination.
Purpose of the article: This paper attempts to devise a measurement method for a creative economy, where as a result of feedback between institutions, human capital and technology conditions facilitating the development of creativity are created.
Methods: An empirical meta-analysis of indicators characterising innovativeness and institutional environment was carried out, following the hypothesis that at least in part they contain common information on creative economy.
Findings and Value added: The new synthetic index, a creative economy index (CEI), was constructed. The study was conducted for a group of 34 economies of the European Union and its associated states for the period of 2005?2014.


Download data is not yet available.


Acemoglu, D. (2009). Introduction to modern economic growth. Princeton, NJ: Princeton University Press.
Acemoglu, D. (2013). The world our grandchildren will inherit. In I. Palacios-Huerta (Ed.). In 100 years leading economists predict the future. Cambridge: MIT Press.
Acemoglu, D., & Robinson, J. (2012). Why nations fail: the origins of power, prosperity, and poverty. New York: Crown Publishers.
Aghion, P., & Howitt, P. (1992). A model of growth through creative destruction. Econometrica, 60(2). doi: 10.2307/2951599.
Arrow, K. J. (1962). The economic implications of learning by doing. Review of Economic Studies, 29(3). doi: 10.2307/2295952.
Bashir, A-H. M., & Darrat A. F. (1994). Human capital, investment and growth: some results from an endogenous growth model. Journal of Economics and Finance, 18(1). doi: 10.1007/BF02920223.
Becker, G. S., Murphy K. M., & Tamura, R. (1990). Human capital, fertility and economic growth. Journal of Political Economy, 98(5). doi: 10.1086/261723.
Balcerzak, A. P. (2016). Multiple-criteria evaluation of quality of human capital in the European Union countries. Economics & Sociology, 9(2). doi: 10.14254/2071-789X.2016/9-2/1.
Balcerzak, A. P. (2016a). Technological potential of European economy. Proposition of measurement with application of multiple criteria decision analysis. Montenegrin Journal of Economics, 12(3). doi: 10.14254/1800-5845.2016/12-3/1.
Balcerzak, A. P., & Pietrzak, M.B. (2016). Quality of institutions for knowledge-based economy within new institutional economics framework. Multiple criteria decision analysis for European countries in the years 2000?2013. Economics & Sociology, 9(4). doi: 10.14254/2071-789X.2016/9-4/4.
Carlsson, B., & Jacobsson, S. (2005). Diversity creation and technological systems: a technology policy perspective. In C. Edquist (Ed.). Systems of innovation: technologies, institutions, and organizations. London: Routledge.
Caves, R. E. (2000). Creative industries: contracts between art and commerce. Cambridge, Massachusetts and London: Harvard University Press.
Dutta, S., Lanvin, B., & Wunsh-Vincent, S. (2015). The global innovation index 2015. Retrieved from (12.12.2015).
Edquist, C. (Ed.) (2005). Systems of innovation: technologies, institutions and organizations. London: Routledge.
Florida, R. L. (2002). The rise of the creative class: and how it?s transforming work, leisure, community and everyday life. New York: Basic Books.
Fraser Institute. (2015). Economic freedom of the world. Retrieved from (23.10.2015).
Freedom House (2015). Freedom in the world. Retreived from G8qzE (4.12.2015).
Freire-Seren, M. J. (2001). R&D-expenditure in an endogenous growth model. Journal of Economics, 74(1).
Grossman, H., & Helpman, E. (1991). Quality ladders in the theory of growth. Review of Economic Studies, 58(1). doi: 10.2307/2298044.
Grupp, H., & Schubert, T. (2010). Review and new evidence on composite innovation indicators for evaluating national performance. Research Policy, 39(1). doi: 10.1016/j.respol.2009.10.002.
Hair Jr., J. F., Black, W. C., Babin B. J., & Anderson, R. E. (2009). Multivariate data analysis. New York: Prentice Hall.
Hodgson, G. M. (1998). The approach of institutional economics. Journal of Economics Literature, 36.
Hollanders, H., Es-Sadki N., & Kanerva, M. (2015). Innovation union ccoreboard 2015. Retrieved from (17.11.2015).
Howitt, P. (1999). Steady endogenous growth with population and R&D inputs growing. Journal of Political Economy, 107(4). doi: 10.1086/250076.
Howkins, J. (2001). The creative economy: how people make money from ideas. London: Penguin Books Limited.
European Commission (2015). Innovation union scoreboard database. Retrieved from index_en.htm (7.11.2015).
Jones, C. I. (1995). R&D-based models of economic growth. Journal of Political Economy, 103(4). doi: 10.1086/262002.
Kaufmann, D., & Kraay, A. (2015). Worldwide governance indicators. Retreived from (13.11.2015).
King, R. G., & Rebelo, S. (1990). Public policy and economic growth: developing neoclassical implications. Journal of Political Economy, 98(5). doi: 10.1086/261727.
Knight, F.H. (1944). Diminishing returns from investment. Journal of Political Economy, 52(1). doi: 10.1086/256134.
Kuznets, S. (1966). Modern economic growth: rate, structure and spread. New Haven and London: Yale University Press.
Kuznets, S. (1972). Innovations and adjustments in economic growth. Swedish Journal of Economics, 74(4). doi: 10.2307/3439284.
Loehlin, J.C. (2011). Latent variable models: an introduction to factor, path, and structural equation analysis. New York: Routledge.
Lucas, R.E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1). doi: 10.1016/0304-3932(88)90168-7.
Machlup, F. (1962). The production and distribution of knowledge in the United States. Princeton: Princeton University Press.
Mankiw, N., Romer D., & Weil, D. N. (1992). A contribution to the empirics of economic growth. Quarterly Journal of Economics, 107(2). doi: 10.2307/2118477.
Nelson, R., & Nelson, K. (2002). Technology, institutions, and innovation systems. Research Policy, 31(2). doi: 10.1016/S0048-7333(01)00140-8.
Nelson, R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge: Harvard University Press.
Nicoletti, G., Scarpetta S., & Boylaud, O. (2000). Summary indicators of product market regulation with an extension to employment protection legislation. ECO Working Paper no. 226. doi: 10.2139/ssrn.201668.
Nordhaus, W. D. (1969). An economic theory of technical change. American Economic Review, 59(2).
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge: Harvard University Press. doi: 10.1017/CBO9780511808678.
OECD (2008). Handbook on constructing composite indicators. Methodology and user guide. Paris: OECD.
OECD (1996). The knowledge?based economy. Paris: OECD.
Rebelo, S. (1999). Long-run policy analysis and long-run growth. Journal of Political Economy, 99(3). doi: 10.1086/261764.
Rivera-Batiz, L. A., & Romer, P. M. (1991). Economic integration and endogenous growth. Quarterly Journal of Economics, 106(2). doi: 10.2307/2937946.
Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5). doi: 10.1086/261725.
Romer, P. M. (1986). Increasing returns and long?run growth. Journal of Political Economy, 94(5). doi: 10.1086/261420.
Romer, P. M. (1994). The origins of endogenous growth. Journal of Economic Perspectives, 8(1). doi: 10.1257/jep.8.1.3.
Schmookler, J. (1966). Invention and economic growth. Cambridge, Massachusetts: Harvard University Press. doi: 10.4159/harvard.9780674432833.
Schumpeter, J. A. (1934). The theory of economic development: an inquiry into profits, capital, credit, interest rate and the economic cycle. Cambridge, Massachusetts: Harvard University Press.
Schumpeter, J. A. (1939). Business cycles: a theoretical, historical and statistical analysis of the capitalist process. New York, London: McGraw?Hill Book Company.
Solow, R. M. (1957). Technical change and the aggregate production function. The Review of Economics and Statistics, 39(3). doi: 10.2307/1926047.
Strulik, H. (2005). The role of human capital and population growth in R&D-based models of economic growth. Review of International Economics, 13(1). doi: 10.1111/j.1467-9396.2005.00495.x.
Swan, T. W. (1956). Economic growth and capital accumulation. Economic Record, 32(2). doi: 10.1111/j.1475-4932.1956.tb00434.x.
The Heritage Foundation (2015). Index of economic freedom. Retreived from (13.11.2015).
Uzawa, H. (1965). Optimum technical change in an aggregative model of economic growth. International Economic Review, 6(1). doi: 10.2307/2525621.
Von Neumann, J. (1945). A model of general equilibrium. Review of Economic Studies, 13(1).
Williamson, O. E. (2000). The new institutional economics: taking stock, looking ahead. Journal of Economic Literature, 38(3). doi: 10.1257/jel.38.3.595.
World Bank (2015). Doing business. Retrieved from http://www.doingbusiness .org/data (16.11.2015).
World Bank (2012). Knowledge assessment methodology 2012. Retrieved from (15.11.2015).
World Economic Forum (2015). Global competitiveness report. Retrieved from (19.12.2015).
Żelazny, R. (2016). Measuring the sustainable information society. In E. Ziemba (Ed.). Towards a Sustainable Information Society: People, Business and Public Administration Perspectives. Newcastle upon Tyne: Cambridge Scholars Publishing.




How to Cite

Żelazny, R., & Pietrucha, J. (2017). Measuring innovation and institution: the creative economy index. Equilibrium. Quarterly Journal of Economics and Economic Policy, 12(1), 43–62.



Regional convergence and growth based on innovations

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.