Confucian culture and technological innovation: the long-term impact of informal institutions on regional progress in China

Culture as an informal institution plays an important role in technological progress. Despite being a crucial informal institution in China, the influence of Confucian culture on technological innovation has been largely overlooked. This study uses Confucian academies data from the Tang to Qing Dynasties (618–1911) and Chinese city patent data from 2000 to 2017 to examine the long-term impact of Confucian traditional culture on regional technological innovation levels from an informal institutional perspective. The study finds that Confucian culture enhances regional technological innovation. In terms of influence channels, Confucian culture directly and indirectly exerts a positive long-term influence on the level of regional technological innovation through the mechanism of improving social trust levels. Further analysis indicates that the role of Confucian culture in fostering technological progress is more pronounced in regions with limited Taoist and Buddhist influences, minimal foreign cultural impacts, and a robust legal environment. This research sheds light on the intricate mechanisms through which informal institutions impact technological innovation, offering valuable insights for theoretical exploration.