Publication
Innovation on worldwide businesses in the period 2011- 2017: panel data analysis on the impact of the business environmental factors
| Summary: | On the modern stage of economic development, innovation policy is deemed to be a significant component of sustainable development by finding new solutions in response to problems, that ensue in the social and economic grounds. A key to a successful increase in innovation is to reveal and study what are the main business environment factors that determine innovation activity in companies. However, there are few works in the scientific literature that make such research. So, the objective of this research work is to identify and quantify which business environment elements impact on business innovation activity, in the last decade. With the purpose of accomplishing such goal the statistical analysis panel data methods (in particular, fixed and random effects models) were applied to a secondary dataset provided by the Global Entrepreneurship Monitor (GEM). The research work analyses the impact of the GEM’s business environment factors, assessed by its experts, on the innovation activity worldwide as well as by the income level of 100 world economies. This study concludes that worldwide factors as financing, government support, lower taxes and bureaucracy, entrepreneurship education in primary and secondary levels of education and the country’s economy openness present an important positive impact on innovation. Such results are obtained for a set of very heterogeneous world economies. None of the factors showed statistical evidence for low-income countries. Financing, basic school training and education, R&D transfer, and cultural and social norms have a positive impact on innovation activity in lower-middle-income countries. Financing, governmental support and policies, reduced taxes and bureaucracy, and basic school training and education revealed to influence innovation activity in upper-middle-income economies positively, whereas market dynamics and physical services and infrastructure influence negatively. In high-income economies, lower taxes and bureaucracy, commercial and professional infrastructure and market openness increase innovation activity, while market dynamics decrease it. |
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| Main Authors: | Savosh, Kateryna |
| Subject: | Innovation Business environment indicators Global Entrepreneurship Monitor (GEM) Panel data methods |
| Year: | 2019 |
| Country: | Portugal |
| Document type: | master thesis |
| Access type: | open access |
| Associated institution: | Instituto Politécnico de Bragança |
| Language: | English |
| Origin: | Biblioteca Digital do IPB |
| Summary: | On the modern stage of economic development, innovation policy is deemed to be a significant component of sustainable development by finding new solutions in response to problems, that ensue in the social and economic grounds. A key to a successful increase in innovation is to reveal and study what are the main business environment factors that determine innovation activity in companies. However, there are few works in the scientific literature that make such research. So, the objective of this research work is to identify and quantify which business environment elements impact on business innovation activity, in the last decade. With the purpose of accomplishing such goal the statistical analysis panel data methods (in particular, fixed and random effects models) were applied to a secondary dataset provided by the Global Entrepreneurship Monitor (GEM). The research work analyses the impact of the GEM’s business environment factors, assessed by its experts, on the innovation activity worldwide as well as by the income level of 100 world economies. This study concludes that worldwide factors as financing, government support, lower taxes and bureaucracy, entrepreneurship education in primary and secondary levels of education and the country’s economy openness present an important positive impact on innovation. Such results are obtained for a set of very heterogeneous world economies. None of the factors showed statistical evidence for low-income countries. Financing, basic school training and education, R&D transfer, and cultural and social norms have a positive impact on innovation activity in lower-middle-income countries. Financing, governmental support and policies, reduced taxes and bureaucracy, and basic school training and education revealed to influence innovation activity in upper-middle-income economies positively, whereas market dynamics and physical services and infrastructure influence negatively. In high-income economies, lower taxes and bureaucracy, commercial and professional infrastructure and market openness increase innovation activity, while market dynamics decrease it. |
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