New Indicators of Innovation Activity in Economic Growth Models

Abstract

Our extensive literature review shows that innovations are fundamental to maintaining competitiveness at both micro- and macro-economic levels. In this study, we address how to improve the measurement of innovations and their impact on a country’s competitiveness and economic growth. We provide an overview of indicators used to measure innovations and propose three new ones that are supposed to capture knowledge spillover: The Foreign Knowledge Inflow, Domestic Knowledge Outflow, and General Propensity to Patent. Innovation was proxied by the number of patent applications, which we supplemented with indexes measuring the origin of knowledge and its transfer. We employed the system GMM method on panel data of 56 countries for 2002–2019 to confirm and compare the informational value of standard innovation indicators and our indexes. Implementation of indexes revealed the counteracting impact of patenting on economic growth when the positive effect of innovation creation is weakened by knowledge disclosure. We provide evidence that a low propensity to patent facilitates growth. The impact of foreign knowledge on an economy is dependent on its technological capacity. The infusion of foreign knowledge boosts the growth of fast-growing economies but inhibits the growth of less technologically sophisticated ones. This supports our assumption that when researching the impact of innovations on economic growth, it is crucial to consider additional factors. Hence, index implementation appears to be the correct method.

Clusterization in Tourism Development Level's Assessment of Regions: Example of Ukraine

“…In (Zhu et al, 2022), characteristics of the spatial distribution of pro-poor tourism villages in China are described using disequilibrium index, kernel density analysis, and spatial autocorrelation. Selection of a method for studying the uneven development of regions should make it possible to distribute objects not by one parameter, but by a whole set of features (Reznakova et al, 2022). An incomplete, unreliable or lowquality data used for analysis does not allow for an objective assessment and thus reduces the effectiveness of the entire subsequent management process.…”