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Can we map innovation capabilities?

Author

Listed:
  • Federico Moscatelli
  • Christian Chacua
  • Shreyas Gadgin Matha
  • Matte Hartog
  • Eduardo Hernandez Rodriguez
  • Julio Raffo
  • Muhammed A. Yildirim

Abstract

Recent years have witnessed a resurgence of industrial policies globally. Through various industrial policy instruments, governments make critical scientific and technological choices that shape innovation paths and resource allocations. Our paper explores innovation capabilities as essential drivers of competitive outcomes, spanning science, technology, and production domains. Based on the economic complexity literature, we propose a methodological framework to measure the innovation capabilities empirically, leveraging data on scientific publications, patents, and trade. Our findings highlight the multidimensional nature of innovation capabilities and underscore the importance of understanding both the specialization and quality of these capabilities. Our results are in line with the complexity literature, as we also find: (i) positive correlations between the innovation complexity and economic growth; and, (ii) the predictive power of existing innovation capabilities for fostering new ones. Based on these findings, we propose novel indicators informing innovation policymaking on the innovation potential across science, technology, and production fields of an ecosystem. We suggest that innovation policymaking needs to be informed by deeper insights into innovation capabilities that are crucial for long-term growth and competitiveness improvement.

Suggested Citation

  • Federico Moscatelli & Christian Chacua & Shreyas Gadgin Matha & Matte Hartog & Eduardo Hernandez Rodriguez & Julio Raffo & Muhammed A. Yildirim, 2024. "Can we map innovation capabilities?," WIPO Economic Research Working Papers 81, World Intellectual Property Organization - Economics and Statistics Division.
    • Handle: RePEc:wip:wpaper:81
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation capabilities; Complexity metrics; Innovation ecosystems; Science and technology policy; Industrial policy; Economic development; Smart specialization;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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