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The dynamics of national innovation systems: a panel cointegration analysis of the coevolution between innovative capability and absorptive capacity

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  • Fulvio, Castellacci
  • Jose Miguel, Natera

Abstract

This paper puts forward the idea that the dynamics of national innovation systems is driven by the coevolution of two main dimensions: innovative capability and absorptive capacity. The empirical analysis employs a broad set of indicators measuring national innovative capabilities and absorptive capacity for a panel of 98 countries in the period 1980-2008, and makes use of panel cointegration analysis to investigate long-run relationships and coevolution patterns among these variables. The results indicate that the dynamics of national systems of innovation is driven by the coevolution of three innovative capability variables (technological output, scientific output, innovative input), on the one hand, and three absorptive capacity factors (income per capita, infrastructures and international trade), on the other.

Suggested Citation

  • Fulvio, Castellacci & Jose Miguel, Natera, 2011. "The dynamics of national innovation systems: a panel cointegration analysis of the coevolution between innovative capability and absorptive capacity," MPRA Paper 31583, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:31583
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    Cited by:

    1. 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.
    2. Castellacci, Fulvio & Natera, Jose Miguel, 2016. "Innovation, absorptive capacity and growth heterogeneity: Development paths in Latin America 1970–2010," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 27-42.
    3. A.S. Gogoleva & E.S. Balabanova & Azer G. Efendiev, 2016. "Determinants of Employee Innovative Behavior: Do Foreign and Domestic Companies in Russia Differ?," HSE Working papers WP BRP 53/MAN/2016, National Research University Higher School of Economics.
    4. Klein, Malte & Sauer, Andreas, 2016. "Celebrating 30 years of innovation system research: What you need to know about innovation systems," Hohenheim Discussion Papers in Business, Economics and Social Sciences 17-2016, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    5. repec:kap:jtecht:v:42:y:2017:i:4:d:10.1007_s10961-016-9491-6 is not listed on IDEAS
    6. Maribel Guerrero & David Urbano & Alain Fayolle & Magnus Klofsten & Sarfraz Mian, 2016. "Entrepreneurial universities: emerging models in the new social and economic landscape," Small Business Economics, Springer, vol. 47(3), pages 551-563, October.
    7. Alberto Botta, 2015. "The complex inequality-innovation-public investment nexus: What we (don't) know, what we should, and what we have to do," Working Papers PKWP1506, Post Keynesian Economics Study Group (PKSG).
    8. repec:eee:tefoso:v:122:y:2017:i:c:p:262-274 is not listed on IDEAS
    9. 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.
    10. Ronald Ravinesh Kumar & Peter Josef Stauvermann & Syed Jawad Hussain Shahzad, 2017. "Can technology provide a glimmer of hope for economic growth in the midst of chaos? A case of Zimbabwe," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(2), pages 919-939, March.
    11. Feser, Daniel & Bizer, Kilian & Rudolph-Cleff, Annette & Schulze, Joachim, 2016. "Energy audits in a private firm environment: Energy efficiency consultants' cost calculation for innovative technologies in the housing sector," Center for European, Governance and Economic Development Research Discussion Papers 275, University of Goettingen, Department of Economics.
    12. Frank, Alejandro Germán & Cortimiglia, Marcelo Nogueira & Ribeiro, José Luis Duarte & Oliveira, Lindomar Subtil de, 2016. "The effect of innovation activities on innovation outputs in the Brazilian industry: Market-orientation vs. technology-acquisition strategies," Research Policy, Elsevier, vol. 45(3), pages 577-592.
    13. Autio, Erkko & Kenney, Martin & Mustar, Philippe & Siegel, Don & Wright, Mike, 2014. "Entrepreneurial innovation: The importance of context," Research Policy, Elsevier, vol. 43(7), pages 1097-1108.
    14. Sultan Mehmood, 2013. "Access to External Finance and Innovation: A Macroeconomic Perspective," CPB Discussion Paper 218, CPB Netherlands Bureau for Economic Policy Analysis.
    15. repec:eee:tefoso:v:120:y:2017:i:c:p:48-58 is not listed on IDEAS
    16. Choung, Jae-Yong & Hwang, Hye-Ran & Song, Wichin, 2014. "Transitions of Innovation Activities in Latecomer Countries: An Exploratory Case Study of South Korea," World Development, Elsevier, vol. 54(C), pages 156-167.
    17. Borrás , Susana & Edquist , Charles, 2013. "Competence Building: A Systemic Approach to Innovation Policy," Papers in Innovation Studies 2013/28, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    18. Hu, Mei-Chih & Kang, Jin-Su & Wu, Ching-Yan, 2017. "Determinants of profiting from innovation activities: Comparisons between technological leaders and latecomers," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 223-236.
    19. Santos-Arteaga, Francisco J. & Di Caprio, Debora & Tavana, Madjid & O’Connor, Aidan, 2017. "Innovation dynamics and labor force restructuring with asymmetrically developed national innovation systems," International Business Review, Elsevier, vol. 26(1), pages 36-56.
    20. Fulvio, Castellacci, 2012. "Business Groups, Innovation and Institutional Voids in Latin America," MPRA Paper 41481, University Library of Munich, Germany.
    21. repec:eee:respol:v:46:y:2017:i:7:p:1299-1311 is not listed on IDEAS
    22. Matthijs Janssen & Carolina Castaldi & Alexander Alexiev, 2014. "Dynamic capabilities for service innovation: conceptualization and measurement," Working Papers 14-07, Eindhoven Center for Innovation Studies, revised Mar 2014.

    More about this item

    Keywords

    national systems of innovation; innovative capability; absorptive capacity; economic growth and development; coevolution; panel cointegration analysis;

    JEL classification:

    • F00 - International Economics - - General - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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