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

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.