Year: 2026
Type: preprint
Abstract: Innovation is a key driver of economic growth and competitiveness, yet its determinants remain difficult to assess. This study examines factors associated with technological innovation using patents as a proxy. A panel dataset of 58 countries and 1,207 annual observations (2000–2021) from the World Bank is analyzed. Explanatory variables include R&D expenditure, education expenditure, economic openness, per capita income, and government effectiveness. The empirical strategy combines clustered ordinary least squares and panel data estimators. Diagnostic tests support a two-way fixed-effects model with country and year effects and country-clustered robust standard errors. Results identify R&D expenditure as the most robust determinant of patent activity, showing a positive and significant effect across all specifications. Per capita income is also positively associated with innovation, whereas evidence for education expenditure, openness, and government effectiveness is inconclusive. Findings highlight the importance of sustained investment in R&D to strengthen national innovative capacity.
Source: Research Square
Institution: Catholic University of Ávila
Language: English
Topic: Innovation Policy and R&D
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
Award: G6836765445
OpenAlex ID: W7208822073