THE RELATIONSHIP BETWEEN NATIONAL INNOVATIVE CAPABILITY AND PERFORMANCE IN EUROPE

Year 2017, , 53 - 60, 30.03.2017

Ozcan Karahan

https://doi.org/10.17261/Pressacademia.2017.385

Abstract

Purpose: The aim of
this study is to empirically investigate the relationships between capacity and
performance indicators of National Innovation Systems in European countries
over the period from 2000 to 2014. 

Methodology: As an
analytical tool in order to examine the dynamics of innovation process at macro
level, we used National ınnovation System approach which has had a large scope
in innovation literature over the last decades. In this analytical framework,
we employed Canonical Correlation Method to empirically examine the
relationships between two variable set of capacity and performance components.
National innovation capacity is represented by the dimensions of Research and
Development activities, Human Capital and Information and Communication
Technology (ICT) infrastructure. Dimensions of invention and innovation are
chosen the proxies for performance components of NIS. Thus, this study applies
an empirical method to get different capability dimensions of system together
in order to determine their effectiveness on innovation performance. 

Findings: Results of
the empirical study reveal that the most significant contribution to innovation
performance comes from Human Capital while dimensions of ICT infrastructure and
Research and Development take second and third place, respectively. In
addition, it seems that educational attainment and ICT-using levels are better
indicators for determining the impacts of Human Capital and ICT infrastructure
on innovation performance rather than the levels of education spending and ICT
investment.

Conclusion: As
generally argued, increasing of R&D intensity at country level is not only
sufficient 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 human
capital development in national innovation system.  

Keywords

National innovative capability and performance, Europe

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