IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i15p6922-d1713363.html
   My bibliography  Save this article

Exploring a Sustainable Pathway Towards Enhancing National Innovation Capacity from an Empirical Analysis

Author

Listed:
  • Sylvia Novillo-Villegas

    (Intelligent and Interactive Systems Laboratory (Si2Lab), Universidad de Las Américas, Quito 170125, Ecuador
    Facultad de Ingeniería y Ciencias Aplicadas, Carrera de Ingeniería Industrial, Universidad de Las Américas, Quito 170125, Ecuador)

  • Ana Belén Tulcanaza-Prieto

    (Grupo de Investigación Negocios, Economía, Organizaciones, y Sociedad (NEOS), Escuela de Negocios, Universidad de Las Américas, Quito 170124, Ecuador)

  • Alexander X. Chantera

    (Facultad de Ingeniería y Ciencias Aplicadas, Carrera de Ingeniería Industrial, Universidad de Las Américas, Quito 170125, Ecuador)

  • Christian Chimbo

    (Facultad de Ingeniería y Ciencias Aplicadas, Carrera de Ingeniería Industrial, Universidad de Las Américas, Quito 170125, Ecuador)

Abstract

Innovation is a strategic driver of sustainable competitive advantage and long-term economic growth. This study proposes an empirical framework to support the sustained development of national innovation capacity by examining key enabling factors. Drawing on an extensive review of the literature, the research investigates the interrelationships among governmental support (GS), innovation agents (IA), university–industry R&D collaborations (UIRD), and innovation cluster development (ICD), and their influence on two critical innovation outcomes, knowledge creation (KC) and knowledge diffusion (KD). Using panel data from G7 countries spanning 2008 to 2018, sourced from international organizations such as the World Bank, the World Intellectual Property Organization, and the World Economic Forum, the study applies regression analysis to test the proposed conceptual model. Results highlight the foundational role of GS in providing a balanced framework to foster collaborative networks among IA and enhancing the effectiveness of UIRD. Furthermore, IA emerges as a pivotal actor in advancing innovation efforts, while the development of innovation clusters is shown to selectively enhance specific innovation outcomes. These findings offer theoretical and practical contributions for policymakers, researchers, and stakeholders aiming to design supportive ecosystems that strengthen sustainable national innovation capacity.

Suggested Citation

  • Sylvia Novillo-Villegas & Ana Belén Tulcanaza-Prieto & Alexander X. Chantera & Christian Chimbo, 2025. "Exploring a Sustainable Pathway Towards Enhancing National Innovation Capacity from an Empirical Analysis," Sustainability, MDPI, vol. 17(15), pages 1-25, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:6922-:d:1713363
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/15/6922/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/15/6922/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Autant-Bernard, Corinne & Fadairo, Muriel & Massard, Nadine, 2013. "Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence," Research Policy, Elsevier, vol. 42(1), pages 196-210.
    2. Mohd Nizam Ab Rahman & Mahmood Doroodian & Yusniza Kamarulzaman & Norhamidi Muhamad, 2015. "Designing and Validating a Model for Measuring Sustainability of Overall Innovation Capability of Small and Medium-Sized Enterprises," Sustainability, MDPI, vol. 7(1), pages 1-26, January.
    3. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
    4. Sylvia Novillo-Villegas & Ricardo Ayala-Andrade & Juan Pablo Lopez-Cox & Javier Salazar-Oyaneder & Patricia Acosta-Vargas, 2022. "A Roadmap for Innovation Capacity in Developing Countries," Sustainability, MDPI, vol. 14(11), pages 1-20, May.
    5. Sergey Mikhailovich Vasin & Daria Mikhailovna Timokhina, 2024. "Specific Effect of Innovation Factors on Socioeconomic Development of Countries in View of the Global Crisis," Economies, MDPI, vol. 12(8), pages 1-38, July.
    6. Markus Balzat & Horst Hanusch, 2004. "Recent trends in the research on national innovation systems," Journal of Evolutionary Economics, Springer, vol. 14(2), pages 197-210, June.
    7. HMJCB Heenkenda & Fengju Xu & KMMCB Kulathunga & WAR Senevirathne, 2022. "The Role of Innovation Capability in Enhancing Sustainability in SMEs: An Emerging Economy Perspective," Sustainability, MDPI, vol. 14(17), pages 1-22, August.
    8. Liliya Satalkina & Gerald Steiner, 2020. "Digital Entrepreneurship and its Role in Innovation Systems: A Systematic Literature Review as a Basis for Future Research Avenues for Sustainable Transitions," Sustainability, MDPI, vol. 12(7), pages 1-27, April.
    9. Daniele Battaglia & Paolo Neirotti, 2022. "Dealing with the tensions between innovation and internationalization in SMEs: A dynamic capability view," Journal of Small Business Management, Taylor & Francis Journals, vol. 60(2), pages 379-419, March.
    10. Suleman Bawa & Ibn Wahab Benin & Abdulaziz Saleh Almudaihesh, 2024. "Innovation Networks and Knowledge Diffusion Across Industries: An Empirical Study from an Emerging Economy," Sustainability, MDPI, vol. 16(24), pages 1-26, December.
    11. Hu, Mei-Chih & Mathews, John A., 2005. "National innovative capacity in East Asia," Research Policy, Elsevier, vol. 34(9), pages 1322-1349, November.
    12. Swapan Kumar Patra & Mammo Muchie, 2018. "Research and innovation in South African universities: from the triple helix’s perspective," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(1), pages 51-76, July.
    13. Khedhaouria, Anis & Thurik, Roy, 2017. "Configurational conditions of national innovation capability: A fuzzy set analysis approach," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 48-58.
    14. AM.Priyangani Adikari & Haiyun Liu & MMSA. Marasinghe, 2021. "Inward Foreign Direct Investment-Induced Technological Innovation in Sri Lanka? Empirical Evidence Using ARDL Approach," Sustainability, MDPI, vol. 13(13), pages 1-16, June.
    15. Manuel Acosta & Daniel Coronado & Mª Dolores León & Pedro Jesús Moreno, 2020. "The Production of Academic Technological Knowledge: an Exploration at the Research Group Level," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 1003-1025, September.
    16. Minna Saunila, 2016. "Performance measurement approach for innovation capability in SMEs," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 65(2), pages 162-176, February.
    17. Kim, Gabjo & Bae, Jinwoo, 2017. "A novel approach to forecast promising technology through patent analysis," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 228-237.
    18. Shuyi Wang & Daizhong Su, 2022. "Sustainable Product Innovation and Consumer Communication," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    19. Sebastian Ion Ceptureanu & Eduard Gabriel Ceptureanu & Doina Popescu & Olguta Anca Orzan, 2020. "Eco-innovation Capability and Sustainability Driven Innovation Practices in Romanian SMEs," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    20. Alicia Llorca-Ponce & Gregorio Rius-Sorolla & Francisco J. Ferreiro-Seoane, 2021. "Is Innovation a Driver of Sustainability? An Analysis from a Spanish Region," Sustainability, MDPI, vol. 13(16), pages 1-30, August.
    21. Kim, Yee Kyoung & Lee, Keun & Park, Walter G. & Choo, Kineung, 2012. "Appropriate intellectual property protection and economic growth in countries at different levels of development," Research Policy, Elsevier, vol. 41(2), pages 358-375.
    22. Aubert, Jean-Eric, 2005. "Promoting innovation in developing countries: a conceptual framework," Policy Research Working Paper Series 3554, The World Bank.
    23. Sylvia Novillo-Villegas & Patricia Acosta-Vargas & Christian Cruz-Boada & Mateo Garzon & Andre Marin-Dett & Wendy Anzules-Falcones, 2022. "Sustaining the Path for Innovation Capability from a Developing Country Perspective: A Conceptual Framework," Sustainability, MDPI, vol. 14(19), pages 1-26, October.
    24. Koketso Phale & Fanglin Li & Isaac Adjei Mensah & Akoto Yaw Omari-Sasu & Mohammed Musah, 2021. "Knowledge-Based Economy Capacity Building for Developing Countries: A Panel Analysis in Southern African Development Community," Sustainability, MDPI, vol. 13(5), pages 1-28, March.
    25. Demircioglu, Mehmet Akif & Audretsch, David B., 2017. "Conditions for innovation in public sector organizations," Research Policy, Elsevier, vol. 46(9), pages 1681-1691.
    26. Choi, Kanghwa & Narasimhan, Ram & Kim, Soo Wook, 2016. "Opening the technological innovation black box: The case of the electronics industry in Korea," European Journal of Operational Research, Elsevier, vol. 250(1), pages 192-203.
    27. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    28. Martínez-Román, Juan A. & Gamero, Javier & Delgado-González, María de Loreto & Tamayo, Juan A., 2019. "Innovativeness and internationalization in SMEs: An empirical analysis in European countries," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    29. Guan, Jiancheng & Zhao, Qingjun, 2013. "The impact of university–industry collaboration networks on innovation in nanobiopharmaceuticals," Technological Forecasting and Social Change, Elsevier, vol. 80(7), pages 1271-1286.
    30. Przemyslaw Kowalski & Daniel Rabaioli & Sebastian Vallejo, 2017. "International Technology Transfer measures in an interconnected world: Lessons and policy implications," OECD Trade Policy Papers 206, OECD Publishing.
    31. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    32. Adriana Arcos-Guanga & Omar Flor-Unda & Sylvia Novillo-Villegas & Patricia Acosta-Vargas, 2024. "The Impact of Knowledge Spillovers on Economic Growth from a National Perspective: A Comprehensive Analysis," Sustainability, MDPI, vol. 16(15), pages 1-24, July.
    33. Youngseong Koo & Keuntae Cho, 2021. "The Relationship between Patents, Technology Transfer and Desorptive Capacity in Korean Universities," Sustainability, MDPI, vol. 13(9), pages 1-14, May.
    34. Perez-Trujillo, Manuel & Lacalle-Calderon, Maricruz, 2020. "The impact of knowledge diffusion on economic growth across countries," World Development, Elsevier, vol. 132(C).
    35. World Bank, 2010. "Innovation Policy : A Guide for Developing Countries," World Bank Publications - Books, The World Bank Group, number 2460.
    36. Minna Saunila, 2016. "Performance measurement approach for innovation capability in SMEs," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 65(2), pages 162-176, February.
    37. Zhang, Yi & Chen, Kaihua & Fu, Xiaolan, 2019. "Scientific effects of Triple Helix interactions among research institutes, industries and universities," Technovation, Elsevier, vol. 86, pages 33-47.
    38. Marxt, Christian & Brunner, Claudia, 2013. "Analyzing and improving the national innovation system of highly developed countries — The case of Switzerland," Technological Forecasting and Social Change, Elsevier, vol. 80(6), pages 1035-1049.
    39. Hershberg, Eric & Nabeshima, Kaoru & Yusuf, Shahid, 2007. "Opening the Ivory Tower to Business: University-Industry Linkages and the Development of Knowledge-Intensive Clusters in Asian Cities," World Development, Elsevier, vol. 35(6), pages 931-940, June.
    40. Barbara Bigliardi & Alberto Ivo Dormio, 2009. "An empirical investigation of innovation determinants in food machinery enterprises," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 12(2), pages 223-242, April.
    41. Charity Ruramai Nhemachena & Johann F. Kirsten & Binganidzo Muchara, 2019. "The Effects of Plant Breeders’ Rights on Wheat Productivity and Varietal Improvement in South African Agriculture," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    42. Wenjing Wang & Yiwei Liu, 2021. "Community-level characteristics and member firms’ invention: evidence from university–industry innovation community in China," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(11), pages 8913-8934, November.
    43. Fernández-Esquinas, Manuel & Pinto, Hugo & Yruela, Manuel Pérez & Pereira, Tiago Santos, 2016. "Tracing the flows of knowledge transfer: Latent dimensions and determinants of university–industry interactions in peripheral innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 266-279.
    44. Wendy Anzules-Falcones & Sylvia Novillo-Villegas, 2023. "Innovation Capacity, Entrepreneurial Orientation, and Flexibility: An Analysis from Industrial SMEs in Ecuador," Sustainability, MDPI, vol. 15(13), pages 1-24, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sylvia Novillo-Villegas & Patricia Acosta-Vargas & Christian Cruz-Boada & Mateo Garzon & Andre Marin-Dett & Wendy Anzules-Falcones, 2022. "Sustaining the Path for Innovation Capability from a Developing Country Perspective: A Conceptual Framework," Sustainability, MDPI, vol. 14(19), pages 1-26, October.
    2. Sylvia Novillo-Villegas & Ricardo Ayala-Andrade & Juan Pablo Lopez-Cox & Javier Salazar-Oyaneder & Patricia Acosta-Vargas, 2022. "A Roadmap for Innovation Capacity in Developing Countries," Sustainability, MDPI, vol. 14(11), pages 1-20, May.
    3. Malisah Latip & Ismawati Sharkawi & Zainalabidin Mohamed, 2025. "Enhancing Sustainability Practices in Malaysian Food Manufacturing SMEs: The Mediating Effect of Innovation Capability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(3), pages 4035-4052, May.
    4. Proksch, Dorian & Haberstroh, Marcus Max & Pinkwart, Andreas, 2017. "Increasing the national innovative capacity: Identifying the pathways to success using a comparative method," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 256-270.
    5. Daronco, Everaldo Luis & Silva, Diego S. & Seibel, Martina Konzen & Cortimiglia, Marcelo Nogueira, 2023. "A new framework of firm-level innovation capability: A propensity–ability perspective," European Management Journal, Elsevier, vol. 41(2), pages 236-250.
    6. Monica Violeta Achim & Alexandra Ioana Daniela Rus & Nawazish Mirza, 2024. "How does intellectual capital spur innovation in economy? A cross-country survey," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3125-3154, December.
    7. Kang, Byeongwoo & Nabeshima, Kaoru & Cheng, Fang-Ting, 2015. "Avoiding the middle income trap : indigenous innovative effort vs foreign innovative effort," IDE Discussion Papers 509, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Arranz, Nieves & Arroyabe, Marta F. & Schumann, Martin, 2020. "The role of NPOs and international actors in the national innovation system: A network-based approach," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    9. Kamilia Loukil, 2016. "Role of Human Resources in the Promotion of Technological Innovation in Emerging and Developing Countries," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 341-352, September.
    10. Jiao, Hao & Zhou, Jianghua & Gao, Taishan & Liu, Xielin, 2016. "The more interactions the better? The moderating effect of the interaction between local producers and users of knowledge on the relationship between R&D investment and regional innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 110(C), pages 13-20.
    11. Zhao, S.L. & Cacciolatti, L. & Lee, S.H. & Song, W., 2015. "Regional collaborations and indigenous innovation capabilities in China: A multivariate method for the analysis of regional innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 202-220.
    12. Khayyat, Nabaz T. & Lee, Jeong-Dong, 2015. "A measure of technological capabilities for developing countries," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 210-223.
    13. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    14. Guan, JianCheng & Yam, Richard C.M., 2015. "Effects of government financial incentives on firms’ innovation performance in China: Evidences from Beijing in the 1990s," Research Policy, Elsevier, vol. 44(1), pages 273-282.
    15. Lee, Sangwon & Nam, Yoonjae & Lee, Seonmi & Son, Hyunjung, 2016. "Determinants of ICT innovations: A cross-country empirical study," Technological Forecasting and Social Change, Elsevier, vol. 110(C), pages 71-77.
    16. Guan, Jiancheng & Chen, Kaihua, 2012. "Modeling the relative efficiency of national innovation systems," Research Policy, Elsevier, vol. 41(1), pages 102-115.
    17. Erzurumlu, S. Sinan & Erzurumlu, Yaman O. & Yoon, YongKi, 2022. "National innovation systems and dynamic impact of institutional structures on national innovation capability: A configurational approach with the OKID method," Technovation, Elsevier, vol. 114(C).
    18. Munshi Naser Ibne Afzal, 2014. "An empirical investigation of the National Innovation System (NIS) using Data Envelopment Analysis (DEA) and the TOBIT model," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(4), pages 507-523, July.
    19. Proksch, Dorian & Busch-Casler, Julia & Haberstroh, Marcus Max & Pinkwart, Andreas, 2019. "National health innovation systems: Clustering the OECD countries by innovative output in healthcare using a multi indicator approach," Research Policy, Elsevier, vol. 48(1), pages 169-179.
    20. Azagra-Caro,Joaquín M. & Consoli,Davide, 2013. "Knowledge Flows and Public-Private Cooperation across National Contexts," INGENIO (CSIC-UPV) Working Paper Series 201304, INGENIO (CSIC-UPV), revised 17 Dec 2014.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:gam:jsusta:v:17:y:2025:i:15:p:6922-:d:1713363. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.