TY - JOUR TT - THE RELATIONSHIP BETWEEN NATIONAL INNOVATIVE CAPABILITY AND PERFORMANCE IN EUROPE AU - Karahan, Ozcan PY - 2017 DA - March DO - 10.17261/Pressacademia.2017.385 JF - Journal of Business Economics and Finance JO - JBEF PB - Dilek TEKER WT - DergiPark SN - 2146-7943 SP - 53 EP - 60 VL - 6 IS - 1 KW - National innovative capability and performance KW - Europe N2 - Purpose: The aim ofthis study is to empirically investigate the relationships between capacity andperformance indicators of National Innovation Systems in European countriesover the period from 2000 to 2014. Methodology: As ananalytical tool in order to examine the dynamics of innovation process at macrolevel, we used National ınnovation System approach which has had a large scopein innovation literature over the last decades. In this analytical framework,we employed Canonical Correlation Method to empirically examine therelationships between two variable set of capacity and performance components.National innovation capacity is represented by the dimensions of Research andDevelopment activities, Human Capital and Information and CommunicationTechnology (ICT) infrastructure. Dimensions of invention and innovation arechosen the proxies for performance components of NIS. Thus, this study appliesan empirical method to get different capability dimensions of system togetherin order to determine their effectiveness on innovation performance. Findings: Results ofthe empirical study reveal that the most significant contribution to innovationperformance comes from Human Capital while dimensions of ICT infrastructure andResearch and Development take second and third place, respectively. Inaddition, it seems that educational attainment and ICT-using levels are betterindicators for determining the impacts of Human Capital and ICT infrastructureon innovation performance rather than the levels of education spending and ICTinvestment. Conclusion: Asgenerally argued, increasing of R&D intensity at country level is not onlysufficient condition for improving innovation system in Europe. Accordingly,innovation policies like European Union focusing on an R&D–to-GDP ratio 3%is not enough without providing the requirements for an appropriate humancapital development in national innovation system. CR - Archibugi D. and Coco A. 2004. “A New Indicator of Technological Capabilities for Developed and Developing Countries”, World Development, 32 (4), 629-654. 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(Eds.), Innovation Systems in Small Catching-Up Economies: Innovation, Technology and Knowledge Management 15, Springer Science & Business Media, pp.3-19. CR - Teixeira A.C. 2013. “Evolution, roots and influence of the literature on National Systems of Innovation: a bibliometric account”, Cambridge Journal of Economics, 8, 1-34. UR - https://doi.org/10.17261/Pressacademia.2017.385 L1 - https://dergipark.org.tr/en/download/article-file/379348 ER -