IC is of major, if not dominant, importance in advanced economies. Adoption of capitalist institutions and pro-innovation policies worldwide. Intellectual capitalism as a knowledge-based capitalist economy has emerged, promoting a strong (and criticized) IP regime with strong growth of registered IPRs. Sweden, S. Korea, Switzerland and the US rank highest on innovation spiral variables, and these variables were all positively correlated, except for growth, which was uncorrelated. Small and mostly old Western European countries were found to dominate the set of top ten countries regarding entrepreneurship, quality of government, competitiveness, rule of law and democracy, and EU countries dominated among the top ten regarding quantity of government. Quantity of government was statistically disconnected from all innovation spiral variables as well as from quality of government. Strong innovation spirals appeared to be associated with small countries with high quality democratic governments and strong rule of law while large low quality governments were associated with weak innovation spirals.
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