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The Determinants of Innovation Capacity in the Less Innovative Countries in the Euro-Mediterranean Region

Author

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  • Trabelsi Ramzi

    (Manouba University)

  • Akri Ben Salah

    (University of Manouba)

Abstract

This paper investigates the innovation capacity driving factors in 11 Euro-Mediterranean countries for the period 2000–2012. The countries are chosen according to its capacity for innovation index and the availability of statistics. Our robust estimation is based on the one-step system generalized method of moments (GMM). We found that the most of hypothesis elaborated in the context of developed and emerging countries do not fit with the context of the less innovative countries as they are not knowledge-based economies. The economic growth, the foreign investment (FDI), and the employment in R&D are positive factors that foster the innovation. However, the labor force with tertiary education, the wages, the private funding of R&D, the financial development, and the technological infrastructure are negative factors that deter the innovation. Moreover, this study bridges a gap in the extant literature by examining the main determinants of the innovation capacity in the developing countries located in the same region. Neither this sample of the countries nor this time period has been the subject of investigation by other researchers in the literature.

Suggested Citation

  • Trabelsi Ramzi & Akri Ben Salah, 2018. "The Determinants of Innovation Capacity in the Less Innovative Countries in the Euro-Mediterranean Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 526-543, June.
    • Handle: RePEc:spr:jknowl:v:9:y:2018:i:2:d:10.1007_s13132-015-0347-3
    DOI: 10.1007/s13132-015-0347-3
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    Cited by:

    1. Haddad, Christian & Benner, Maximilian, 2021. "Situating innovation policy in Mediterranean Arab countries: A research agenda for context sensitivity," Research Policy, Elsevier, vol. 50(7).
    2. Xi, Xun & Xi, Baoxing & Miao, Chenglin & Yu, Rongjian & Xie, Jie & Xiang, Rong & Hu, Feng, 2022. "Factors influencing technological innovation efficiency in the Chinese video game industry: Applying the meta-frontier approach," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    3. Ha Thi-Thu Le & Trang Thi-Dai Luong & Trang Thi Thu Nguyen & Duy Van Nguyen, 2023. "Determinants of Intellectual Property Rights Protection in Asian Developing Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4780-4806, December.
    4. Trabelsi Ramzi & Kallal Rahim & Maher Skhiri, 2023. "Scientific Knowledge Valorization in the Public R&D Sector: a Survey and a PLS-SEM Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 226-254, March.
    5. Aneta Bobeni? Hinto?ová & Michaela Bruothová, 2019. "A link between innovation performance and inward foreign direct investments: A case of Slovakia," Proceedings of International Academic Conferences 9812114, International Institute of Social and Economic Sciences.

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    More about this item

    Keywords

    Innovation; R&D; Euro-Mediterranean; GMM;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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