Page 70 - IJPS-9-2

International Journal of
Population Studies Relationship between population aging and innovativeness

to bring in technological advancements in production. should be able to recognize the opportunity to innovate
The authors argue that older individuals face more in face of the environmental changes. Among the catalysts
barriers to becoming entrepreneurs compared to younger for such changes, Drucker emphasizes the potential for
individuals, such as having more economic resources, the leveraging emerging needs resulting from demographic
risk of losing more in case of failure, less time to collect the shifts. However, it is worth noting that older entrepreneurs
rewards of an uncertain activity, and less time to recover may encounter challenges in keeping up with rapid
their economic situation in the case of business failure. technological advancements. Therefore, it is challenging to
Consequently, when an older individual decides to become predict the specific effect that population aging will have
an entrepreneur, their entrepreneurial project should be on the innovativeness of a country.
worth the risk, aligning with Liang et al.’s perspective on In addition, population aging is associated with
the role of experience in business perception. At the same various demographic phenomena, such as increased life
time, older individuals seem less comfortable with new expectancy, decreased natural growth rate, and limited
technologies (Fernàndez-Lòpez et al., 2022).
support from migration to offset potential negative natural
Indeed, the previous research has consistently found balances. These factors, when combined, may contribute
that older individuals tend to have negative attitudes toward to depopulation. Based on Romer’s model, population
new technological devices and innovations. Studies by growth is closely linked to the rate of innovation, making it
Vorrink et al. (2017), Ellis & Allaire (1999) and Tacken et al. crucial to analyze the impact of aging in conjunction with
(2005) have demonstrated a negative association between other demographic forces that contribute to the growing
age and the use of various technological devices, including proportion of elderly individuals.
computers, smartphones, tablets, and other digital tools. With this, we formulated two research questions (RQ),
Furthermore, Ragnedda et al. (2020) have shown a strong which are given below as follows:
relationship between age and the digital divide, indicating
that older individuals are more likely to face challenges in • RQ1: Considering the natural growth rate of the
accessing and utilizing digital technologies effectively. population, the increase in life expectancy and
the migratory balance, does aging still impact the
Angelini (2021) developed a theoretical model that
supports the notion that additional aging within a innovation rates?
workforce hampers the adoption of innovative technologies Furthermore, in light of the discussion in the first part
and diminishes productivity. As young employees, who of the second section, where the importance of institutional
typically have a comparative advantage in utilizing modern settings in determining innovation rates was remarked,
technologies, become scarce, older individuals can further and considering that developed countries typically have
impede the adoption and integration of innovative both a higher proportion of older populations and more
technologies within organizations, potentially affecting efficient institutional frameworks, we aim also to answer to
the overall productivity. These findings collectively suggest the following question:
that older individuals are less comfortable and familiar • RQ2: Considering the heterogeneity in institutional
with new technologies, affecting their ability to engage in settings, are countries characterized by an old
entrepreneurial activities that heavily rely on technological population less innovative than the younger ones?
innovation.
The findings in response to these research questions
In summary, older entrepreneurs, due to their highlight the importance of both demographic factors
accumulated market experience, may possess a heightened and institutional environments in shaping a country’s
ability to identify untapped opportunities for introducing innovation capacity.
new products and services. Moreover, they are likely to
have a deeper understanding of the needs and preferences 2. Data and methods
of an aging population, enabling them to capitalize on the
prospects presented by the “silver economy.” The silver 2.1. Data
economy refers to “the economic opportunities arising The data panel used in this study comprises data from
from the public and consumer expenditure related to aging various official sources. The number of patent applications
population and the specific needs of the population over by residents is obtained from The World Bank Data, while
50 and it comprises a large part of the general consumer the demographic data are sourced from the Population
economy, but with considerable differences in spending Division of the United Nations. The quality of the legal
priorities and patterns” (Pauhofova & Dovalova, 2015, system and business regulation is measured using
p. 191). According to Drucker (1985), an entrepreneur indicators from the Fraser Institute. Educational attainment

Volume 9 Issue 2 (2023) 64 https://doi.org/10.36922/ijps.0429