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The Technological Potential of Innovation Ecosystems

Author

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

Abstract

In developing countries' innovation activities, limited patenting suggests structural gaps that hinder technological progress. This paper investigates whether countries can leverage their scientific and productive capabilities to realize untapped technological potential. We analyze connections between trade, science, and technology across global innovation ecosystems and introduce an indicator to assess where countries are positioned to expand their technological capabilities. Our results show that the indicator predicts technological output growth, though growth slows when countries exceed their predicted potential, indicating diminishing returns. The indicator performs better in more complex ecosystems. These findings provide valuable insights for policymakers, offering a framework to address weaknesses in innovation ecosystems and foster balanced, sustainable technological development.

Suggested Citation

  • Federico Moscatelli & Julio Raffo & Shreyas Gadgin Matha & Christian Chacua & Matté Hartog & Eduardo Hernandez Rodriguez & Muhammed A. Yildirim, 2026. "The Technological Potential of Innovation Ecosystems," WIPO Economic Research Working Papers 90, World Intellectual Property Organization - Economics and Statistics Division.
    • Handle: RePEc:wip:wpaper:90
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    File URL: https://www.wipo.int/edocs/pubdocs/en/wipo-pub-econstat-wp-90-en-the-technological-potential-of-innovation-ecosystems.pdf
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    Keywords

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    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
    • 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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