IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v86y2025icp1099-1118.html
   My bibliography  Save this article

What affects national innovative capacity? The role of economic growth and trade openness

Author

Listed:
  • Lee, Chien-Chiang
  • Zhao, Ya-Nan

Abstract

National innovative capacity (NIC) plays a crucial role in promoting the economic development of countries. This study analyzes the influential factors and heterogeneity characteristics of NIC in 82 countries using data from 2000 to 2020. The analysis of influencing factors using a fixed-effects model revealed that the innovative infrastructure, the innovative environment, and the link between innovative infrastructure and the environment can significantly enhance the NIC. Heterogeneity analysis using the finite mixture model (FMM) finds that 82 countries can be grouped into three groups, and the NIC in different groups have different development paths. The factors influencing NIC have a positive effect in most countries, although a small number of countries’ innovation capacity is constrained by factors such as R&D expenditure. The dynamic analysis results show that NIC development in many countries has seen a positive path shift with economic development and increased openness. This study not only identifies the key factors affecting NIC, but also analyzes in depth how trade openness and economic growth affect NIC, as well as the heterogeneous characteristics of NIC among different groups of countries. The findings reveal the differences in the paths of NIC enhancement among countries at different levels of development, providing a theoretical basis for the formulation of targeted policies. In addition, this study provides a new perspective on the dynamic evolution of NIC, which can be further expanded to a wider sample of countries or combined with finer-grained industrial data in the future to optimize the policy design of NIC enhancement, so as to promote sustainable innovation and economic growth on a global scale.

Suggested Citation

  • Lee, Chien-Chiang & Zhao, Ya-Nan, 2025. "What affects national innovative capacity? The role of economic growth and trade openness," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1099-1118.
  • Handle: RePEc:eee:ecanpo:v:86:y:2025:i:c:p:1099-1118
    DOI: 10.1016/j.eap.2025.04.022
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592625001523
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eap.2025.04.022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:86:y:2025:i:c:p:1099-1118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.