This study investigates the impact of the Global Innovation Index (GII) on FDI inflows across 81 countries from 2013 to 2021, highlighting that the effect of innovation varies significantly across stages of economic development. In particular, the same improvement in innovation capacity generates markedly different FDI responses depending on whether countries are high-, upper-middle-, or lower-middle-income economies. The results indicate that GII positively and significantly impacts FDI across all income groups, though the magnitude varies: a 1-point increase in the GII boosts FDI by 0.009% in high-income countries, 0.028% in upper-middle-income countries, and 0.072% in lower-middle-income countries. However, the effect in lower-middle-income countries is not robust across specifications, indicating that the innovation effect on FDI is conditional rather than universal. These findings suggest that innovation is a stronger driver of FDI in emerging economies, while in advanced economies, mature innovation systems yield smaller marginal effects.
Public funding is a cornerstone of innovation policy, but its effectiveness remains contested, particularly in moderate innovator contexts, where firms face structural constraints, limited absorptive capacity, and institutional inertia. This paper provides counterfactual evidence on how distinct forms of public support shape firm-level innovation performance in Portugal. Drawing on microdata from 13,701 firms in the 2018 Community Innovation Survey (CIS 2016-2018) and using Propensity Score Matching (PSM) to estimate Average Treatment Effects on the Treated (ATET), we compare the impacts of innovation-targeted versus general (non-innovation) subsidies. Robustness checks using alternative matching algorithms (kernel, radius, and nearest-neighbor) confirm result stability. Findings show that innovation-targeted subsidies significantly enhance technological, product, process, and radical innovation, while general subsidies primarily foster incremental innovation and strengthen absorptive capacity, highlighting complementary policy instruments. These findings provide causal evidence of targeted effectiveness and show that subsidy impacts vary across innovation types and institutional context.
This paper presents a novel analysis of the 'Fondo Fiduciario Para el Desarrollo de Capital Emprendedor' (FONDCE) within the broader context of emergence and evolution of the Argentinian venture capital industry. The FONDCE represented a substantive leap in terms of public support for entrepreneurial financing in Argentina. From an evolutionary perspective, the FONDCE directly contributed to the entry and consolidation of new public, private, national, and foreign incubators, accelerators, and venture capital funds. However, the amount of resources was limited, the Argentinian financial instability affected its functioning, and the impact of each of the three funds that made up the FONDCE was uneven. In particular, the resources allocated to finance institutional capabilities were scarce in the case of the Seed Fund, the support to operational costs did not correspond to the crowding-in investments in the Expansion Fund, and different aspects related to bureaucracy and information availability could be improved.
This study examines Industry 4.0 readiness (I4R) and its role in the structural transformation of developing countries. While I4R drives growth, its sectoral impacts vary significantly. Using a novel I4R index and data from 87 countries (2007-2020), we find I4R significantly enhances manufacturing growth. Specifically, for Industrial Leaders, the total marginal effect reaches 0.635, indicating that technological depth acts as a critical multiplier for growth. However, we find a robust negative effect on the service sector, particularly in countries with weaker adaptive capacity, which risks premature deindustrialization or stagnation in the service sector. These dual findings highlight a critical policy trade-off. Leveraging I4R requires promoting manufacturing alongside targeted investments in technological infrastructure and human capital to mitigate service-sector disruption. Our study provides evidence for inclusive innovation policies to navigate this complex digital transformation.
This study analyzes spatial disparities in fixed broadband penetration and digital readiness across Mexico's 32 states from 2015 to 2023. Using a balanced panel of 288 state-year observations, we estimate a hierarchical spatial dynamic panel model that captures temporal persistence, regional interdependence, and multivariate technology effects. Inference relies on heteroskedasticity and autocorrelation-consistent (HAC) standard errors, and stationarity diagnostics address potential spurious correlation. Results reveal strong diffusion inertia, with lagged penetration emerging as the dominant determinant of broadband expansion. ICT equipment availability is positively and robustly associated with penetration, underscoring the importance of household digital readiness. In contrast, conditional technology shares (fiber, DSL, and cable modem) show limited short-run associations once persistence is controlled for. Hierarchical clustering identifies eight regional typologies reflecting enduring institutional and infrastructural heterogeneity. Explaining 91.9% of variation, the model highlights path dependence and ecosystem capacity as central factors shaping broadband diffusion in emerging economies.
Science and Technology (S&T) Official Development Assistance (ODA) projects frequently fail to commercialize research outputs in developing countries due to the 'Valley of Death'. This study argues that such failures arise from both limited absorptive capacity and technology - market misalignment between donor-designed technologies and local needs. We develop and validate a typology of Pilot and Demonstration Centres (PDCs) as critical intermediaries for contextual technology transfer.Using mixed-methods combining Analytic Hierarchy Process (AHP) and comparative case studies across South Korea, Pakistan, Uzbekistan, Mongolia, and Vietnam, we find that optimal PDC models depend on host countries' technological maturity (TRL) and market readiness. Our context - maturity framework identifies four evolving models - University-Experimental (UE1), University-Exemplary (UE2), R&D Institute-Experimental (RE1), and R&D Institute-Exemplary (RE2) - each suited to different national contexts.By integrating technology and market readiness perspectives, this study extends international technology transfer theory and offers policymakers a diagnostic tool for designing adaptive, context-aware innovation intermediaries.
This study examines the innovation-growth nexus across 19 MENA countries (1990-2022) using a dynamic panel System GMM approach. The results reveal a fragile and conditional relationship. While patenting shows a positive link to growth, this effect is sensitive to model specification and disappears in robust estimations. Human capital negatively impacts growth, signaling deep skills mismatches and weak absorptive capacity. Traditional inputs like R&D and institutional quality are insignificant, highlighting systemic inefficiencies in translating investments into outcomes. Crucially, subsample analysis uncovers a structural dichotomy: the innovation-growth link is present only in non-GCC and politically stable economies, but absent in hydrocarbon-dependent GCC states, where rentier dynamics dominate. The findings underscore that effective innovation policy must be context-specific, addressing structural constraints and regional heterogeneity rather than applying uniform blueprints.
Medical devices (MDs) are crucial to the capabilities of a health system; however, their supply chains for African healthcare systems are under-researched. Kenya serves as a strong illustrative case: despite having robust manufacturing bases in East Africa, the health system is primarily import-dependent, and local MD manufacturing capacity is limited. This article employs a novel 'capability-knowledge base matrix', integrating the conceptual approaches of technological capabilities (TCs) and knowledge bases, to explore the development of the African medical technology sector. Using a case study of MDs supporting reproductive health and cervical cancer (CC) prevention, this research indicates that success within the African MedTech sector needs active investment in cumulative learning within firms, strong linkages with external stakeholders, connections with the domestic health system, and systematic trade and industrial policy support. This paper highlights that strengthening domestic procurement, streamlining regulatory pathways and supporting incremental capability development are key policy strategies for transforming the African MedTech sector.
Tinkering and its role in innovation economy have captured the imagination of policymakers across the globe. In India, a variety of tinkering spaces have emerged in recent years. In this paper, we make an attempt to analyse the mandates, motivations, actors and networks of these evolving spaces of tinkering. Tinkering has the potential to make innovation ecosystems more inclusive, offer solutions that are affordable, need-based and pro-social. Tinkering can delay technological obsolescence by promoting, re-use, and re-combination of technology. Our analysis, however, brings out that the policies on tinkering seem restricted to promoting technological temper, and entrepreneurship. A robust focus on local development and ecosystem building around tinkering remains wanted. The paper emphasizes the need for better embedding of tinkering into the policies on innovation, education, skill development and the local economy.
This paper takes stock of twenty years of Globelics, a community that has transformed how innovation and development are understood in a global context. It shows how Globelics has contributed to placing the global South more centrally in innovation studies by putting learning, innovation and competence building at the heart of development. Reviewing contributions across five key themes, the paper highlights how Globelics has opened new conceptual and empirical horizons. At the same time, it identifies persistent gaps: limited attention to low-income contexts, the need for better indicators, and the challenge of analyzing innovation in an era of geopolitical tension and climate crisis. Looking ahead, the paper outlines a forward agenda that embraces diverse development pathways, strengthens global analysis, and positions innovation research to confront the defining challenges of our time.
Using the World Bank Enterprise Survey covering the period 2005-2023, this study examines the relationship between innovation and employment among Vietnamese firms. The empirical results indicate that innovation significantly contributes to employment growth, highlighting the importance of innovation in driving job creation in a developing country. Product innovation requires firms to hire additional employees to perform new tasks, thereby increasing labor demand. For process innovation, the price effect outweighs the labor-saving effect, resulting in a net positive impact on employment growth. Notably, the employment effects of process innovation are found to be more pronounced than that of product innovation, suggesting that improvements in production efficiency and organizational processes play a critical role in fostering employment growth. In addition, firms engaging in both product and process innovation experience larger employment gains than those introducing only a single innovation type, highlighting the complementary role of innovation scope. The findings remain robust to alternative measures of innovation and employment, as well as the uses of instrumental variable and propensity score matching approaches. Finally, heterogeneous effects are observed across firm size, exporting status, and ownership structure. Building on these empirical results, the study provides several policy implications for promoting employment through innovation.
This study examines the spatial patterns of the Agricultural Innovation System (AIS) and its impact on regional economic development across 26 NUTS-2 regions in Turkiye. Global and Local Moran's I were employed to assess spatial dependence, clustering, and outlier patterns. Subsequently, an Ordinary Least Squares (OLS) regression model was used to investigate the indicators affecting agricultural GDP using GIS-based tools. Moran's I analyses show spatial clustering in some key AIS indicators in Turkiye, suggesting an east-west divergence, with high-high (H-H) clusters concentrated in western regions and low-low (L-L) clusters in eastern regions. These spatial patterns emphasize the need for regionally tailored strategies to strengthen innovation capacity and reduce spatial inequalities. OLS results indicate that agricultural enterprises, organic crop production, and agricultural research actors have a significant positive association with agricultural economic performance. Residual Moran's I results indicate no significant spatial autocorrelation in the model, supporting the validity of the OLS specification. This study contributes to AIS literature by (1) integrating spatial and statistical methods to explore regional geographic patterns and innovation performance, (2) shifting focus from national to regional AIS perspectives, and (3) proposing a methodological framework for regional AIS analysis, offering insights for agricultural policy and regional development.
The transition towards electromobility is a disruptive transformation of the global automotive industry. As any major transformation, it poses opportunities and threats to incumbents and newcomers, not only among firms but also among nations. This article first analyses the automotive industry paradigm and then discusses the implications for the case of Vietnamese carmaker Vinfast which seeks to exploit the postulated green window of opportunity, that is the idea that transformations towards sustainability represent limited opportunities of latecomer catch-up.
Eco-innovation strategies play a vital role in promoting the sustainability both individuals and businesses. Recent academic interest has emphasized eco-innovation within organizations, with an increasing body of literature exploring this topic. This study aims to synthesize and analyze research on eco-innovation in the tourism sector using content analysis and bibliometric methods. This study examined 92 publications from the Scopus and Web of Science (WoS) databases following the PRISMA guidelines. Biblioshiny software was used for performance analysis and science mapping. These research spans 2004-2024, uncovering key trends, intellectual structures, and advancements in the field. The findings demonstrate how sustainable tourism practices can mitigate environmental impacts while boosting industrialy competitiveness. Furthermore, the study identifies 19 relevant theories, expanding the understanding of eco-innovation in tourism and offering valuable insights for future research.
Within the context of the SDGs, this paper explores the green growth financing market in Africa and provides a basis for empirical analysis. The desire to achieve 2050 net-zero emission targets demands extensive investment in climate mitigation means that Africa requires about US$2 trillion by 2030 to mitigate climate change. African Development Bank offers a huge market for green and social financing through its Green Bond Program. The questions are: what opportunities exist in African emerging economies for the use of green bonds? How will green growth financing enhance economic, social, and governance in African emerging economies? What challenges may confront the use of green financing in emerging economies in Africa? We employ the desk review approach to explore the existing potentials and possible challenges that could affect green growth financing in emerging African economies. Results show enormous potential for green growth financing in emerging economies, given that there exist huge natural capital and potential for the capital market and banks to develop new instruments from green bonds, among others. Low level of development of the African capital market, the readiness of governments to make good use of funds from bonds, and weak governance structures may impede affect green growth financing strategies.
This study examines how authoritarian regimes leverage innovation as a strategic tool for policy adaptation and sustainable development while preserving political control. Contrary to the perception of authoritarianism as resistant to change, these regimes selectively embrace innovation to strengthen governance efficiency, reinforce legitimacy, and respond to socio-economic and environmental pressures. The paper conceptualizes 'survival innovation', a concept describing how authoritarian states pursue policy shifts not through democratic pressures but as adaptive responses to existential threats. Drawing on Middle Eastern cases particularly Saudi Arabia, the UAE, and Egypt the analysis shows how centralized decision-making enables rapid policy implementation in economic diversification, digital governance, and sustainability initiatives. However, these innovations often reinforce state power rather than fostering inclusivity and grassroots participation, illustrating the paradox of authoritarian development. This study contributes to the discourse on governance, innovation, and sustainability in non-democratic contexts.
Employment challenges among vulnerable groups, particularly women and youth, remain critical globally. Nigeria has Africa's largest youth population, with most engaged in insecure, low-income informal jobs. Despite mandatory entrepreneurship education since 2006, limited research examines how innovation environments influence entrepreneurial intentions among Nigerian undergraduates. This study investigates how innovation environments affect entrepreneurial intentions among Nigerian undergraduate students, examining the moderating role of entrepreneurship education using pooled data from 3,848 undergraduates across six Nigerian universities (2020/2021). Descriptive statistics profiled innovation environments, while logit regression examined relationships between entrepreneurial intentions and predictors including innovation environment index (mean = 0.538), entrepreneurship education exposure (74.6%), and controls like gender, parental business background (82.3%), and CGPA. Results revealed 53.1% of students operated in more innovative environments. Innovation environment showed insignificant effects (beta = 0.041, p = 0.879), while entrepreneurship education positively influenced intentions (beta = 0.504, p < 0.001). The interaction term (beta = 0.635, p = 0.276) suggested moderation. Significant predictors included parental business engagement (beta = 1.901, p < 0.001), student business engagement (beta = 2.065, p < 0.001), and higher course levels (beta = 0.338, p < 0.05). Findings underscore needs for integrated reforms combining enhanced innovation infrastructure, targeted curricula, and multi-stakeholder collaborations to transform youth unemployment into entrepreneurial opportunities supporting Nigeria's sustainable development goals for decent employment.
