Chapter 5

Laws, Rules, and Role of Government Institutions


We explore the role of government and other institutions and the infrastructure of laws and regulations and their impact on creativity and innovation. We discuss how these may have evolved over the years in China and India and how they are comparable with those in the United States and the impact these are having on innovation today and potentially in the future. In any developing or emerging economy, especially India and China, the presence of corruption and a significant size “parallel economy” is well known. What impact does that have on innovation?



Financial support

Government procurement

Intellectual property rights

Public institutions

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