Innovative capacity and innovation systems and the economic development levels of European countries

Abstract

The paper aims to study the relationship between differences in national
innovation capabilities within three sectors, which are the main building blocks
of an innovation system, and country variations in GDP per capita. Research
in this area has previously focused mostly on the impact of differently defined
innovation capabilities on the level of economic development of countries,
neglecting innovation system sectors approach. The analysis conducted
for this paper has allowed do confirm that there is a positive relationship
between country variations in innovation capabilities within two of the sectors:
enterprise sector and higher education sector, and national differences in
GDP per capita. While the relationship between differences in innovation
capabilities within the latter sector is linear in character, the interdependence
between country variations in enterprise sector innovation capabilities and
economic development are evidently non-linear. Values of composite indexes
calculated for the enterprise sector innovation capabilities above a certain
level have not been accompanied by corresponding higher values of GDP
per capita – this relationship has been evident in both analysed periods. The
study based on gathered statistical information has also allowed to conclude
that during 10 years between 2002–2003 and 2012–2013 there have not been
observed any significant changes on the Europe’s map of innovation leaders.