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How can policy makers foster innovation? Observations from an analysis of OECD countries.

In this paper, we discuss the main determinants of innovation in OECD countries using annual data covering the period 2006–2015. Panel techniques, including Kao co-integration, fully modified ordinary least squares (FMOLS) and panel Granger causality tests, are implemented to investigate the causal...

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Published in:Innovation: The European Journal of Social Sciences Vol. 35; no. 2; pp. 309 - 323
Main Authors: Kirikkaleli, Dervis, Ozun, Alper, Sari, Arif
Format: Article
Published: Taylor & Francis Ltd Jun2022
Subjects:
Granger causality test
Preparedness
Educational quality
Countries
Online Access:View this record in EBSCOhost
Summary:In this paper, we discuss the main determinants of innovation in OECD countries using annual data covering the period 2006–2015. Panel techniques, including Kao co-integration, fully modified ordinary least squares (FMOLS) and panel Granger causality tests, are implemented to investigate the causal and long-term linkages. Our empirical findings reveal that the macroeconomic environment, business sophistication, quality of the education system, technological readiness and infrastructure have significant and positive impacts on innovation in the long term.