Area of Work: Innovation Title: Key Factors influencing Countries Innovation Objectives: Evaluating the Components that contribute to a county’s innovation Performance. For efficient use of resources in those areas, will help developing countries to emerge on a fast track. Methodology: Using Regression model (panel data analysis)

1. KEY INFLUENCING FACTORS FOR COUNTRIES
INNOVATION
Supervisor:
Dr.Sangeetha Gunasekar
Assistant Professor
By:
Chitta
Manoj Venkata Saikumar
MBA-II
Amrita School of Business, Coimbatore

2. SynopsisSynopsis
• Path to the research
 Introduction
 Motivation
 Research Gap
• Research Data
• Research Methodology
• Results
• References

3. IntroductionIntroduction(about GII)(about GII)
• Global Innovation Index
• aims to capture the multi-dimensional faces of
innovation
• 7 year old innovation efficiency ranking index
• Countries all over the world
• Published by Cornell University, INSEAD, and the
World Intellectual Property Organization (WIPO)
• Well defined data series

4. MotivationMotivation
• Innovation as driver for countries economic growth
(Hasan & Tuccic ,2008; Yang, 2006; Senera &
Sarıdogan, 2011)
• Studies found in the literature
•Treat innovation as input to economic growth OR
•As output lead by other economic factors
• Research Gap
•How innovation factors (as inputs) impact other
innovation factors (as outputs)

5. Research AreaResearch Area
“Key influencing factors for
countries innovation”
:A CROSS COUNTRY ANALYSIS

6. Data sourcesData sources
• Source: GII (several years)
• Sample size
• Countries : 135
• Time period: 2012 to 2014

7. DataData
Output VariableOutput Variable
Input VariableInput Variable

8. Institutions
Political environment (PE)
Regulatory environment
Business environment
Human
capital and
research
Education
Tertiary education
Research & development
(R&D),
Infrastructure
Information & communication
technologies (ICTs)
General infrastructure (GI)
Ecological sustainability
Market
sophistication
Credit
Investment
Trade & competition
Business
sophistication
Knowledge workers
Innovation linkages (IL)
Knowledge absorption

9. Research MethodologyResearch Methodology
• Pooled OLS (group dummies are included)
Yit = f (INST + HC&R + INFR + MKTS + BUSS + Ik) + ut
• Country group dummy variables Ik are four categories namely
olow income,
olower-middle income,
oupper-middle income,
ohigh income.
 Hence we include 3 country income country group dummies
in the analysis

10. ResultsResults
Number of
Observations
386
F value 0
R-Square value 83.8
Adjusted R-Square
value
83
• The estimation of the panel data with 386
observations was done
• using the pooled OLS
• The model has F value of 105.44
• P value of 0.00 indicates that the overall
model is good fit
• Adjusted R-square value of 83% as shown
in below

11. S.NO Variable
Coefficient P-Value
1 Political environment (PE) 0.0835 0.003
2 Regulatory environment 0.0116 0.605
3 Business environment 0.0236 0.327
4 Education 0.0610 0.033
5 Tertiary education -0.0451 0.061
6 Research & development (R&D), 0.1592 0.000
7 Information & communication technologies (ICTs) 0.0645 0.030
8 General infrastructure (GI) 0.0248 0.448
9 Ecological sustainability 0.0892 0.000
10 Credit 0.0615 0.001
11 Investment -0.0111 0.612
12 Trade & competition 0.0843 0.002
13 Knowledge workers 0.1369 0.000
14 Innovation linkages (IL) 0.0221 0.359
15 Knowledge absorption 0.0709 0.007

12. Institutions
Political environment (PE)
Regulatory environment
Business environment
Human
capital and
research
Education
Tertiary education
Research & development
(R&D),
Infrastructure
Information & communication
technologies (ICTs)
General infrastructure (GI)
Ecological sustainability
Market
sophistication
Credit
Investment
Trade & competition
Business
sophistication
Knowledge workers
Innovation linkages (IL)
Knowledge absorption
RESULTS

13. Results: InstitutionsResults: Institutions
 With regards to input variable Institutions only Political
environment is stat significant at 10% significance level
indicates
• political stability,
• absence of violence/Terrorism,
• Government effectiveness, and
• Press freedom
contribute positively to the innovation in countries

14. Results: Human Capital &Results: Human Capital &
ResearchResearch
 Under Human capital and research all three input variables
 Education,
 Tertiary education, and
 Research & development (R&D), are seen to stat
significant at 10 % significance level, indicates
 That Government expenditure on education and research,
 Number of researchers,
 teacher’s ratio to Students
 top 3 universities performance matters to innovation.
 While Tertiary education is seems to have a negative impact

15. Results:Results:
InfrastructureInfrastructure
 Under Infrastructure both
 Information & communication technologies (ICTs),
 Ecological sustainability
significant at 10 % significance level indicates
 connectivity of people using like mobile, landline
 availability of computers, internet and internet services
along with
 techniques in energy use, environmental performance and
environmental certificates
contribute positively to the innovation in countries

16. Results: MarketResults: Market
SophisticationSophistication
Under Market sophistication both
 Credit, and
 Trade & competition,
have significant at 10 % significance level, indicates that the
 availability of credit,
 easy access of market and
 competitive market performance
impact positively to the innovation in a country

17. Results: BusinessResults: Business
SophisticationSophistication
 Under Business sophistication both
 Knowledge workers, and
 Knowledge absorption
shows significant impact on innovation at 10 % significance level.
 People working as Professionals on international standard
 Funding for their training and expenditure in R&D
 High technical import, and communication related imports,
 FDI inflows
impact positively to the innovation in a country

18. ConclusionConclusion

19. ReferencesReferences
• Global Innovation Index
http://globalinnovationindex.org/content.aspx?page=GII-Home
• The innovation–economic growth nexus: Global evidence (Hasan & Tuccic ,2008) http
://www.sciencedirect.com/science/article/pii/S0048733310001605
• Is innovation the story of Taiwan's economic growth? (Yang, 2006)
http://www.sciencedirect.com/science/article/pii/S1049007806001151
• The Effects Of Science-Technology-Innovation On Competitiveness And Economic
Growth (Senera & Sarıdogan, 2011)
http://www.sciencedirect.com/science/article/pii/S1877042811016557