The Innovation Index in Europe

Leogrande, Angelo and Laureti, Lucio and Costantiello, Alberto (2022): The Innovation Index in Europe.

Abstract

The following article analyzes the determinants of the innovation index in Europe. The data refer to the European Innovation Scoreboard-EIS of the European Commission for the period between 2010 and 2019 for 36 countries. The data are analyzed using the following econometric techniques: Panel Data with Random Effects, Panel Data with Fixed Effects, Dynamic Panel Data, Pooled OLS, WLS. The results show that the Innovation Index is negatively connected to some variables, among which the most significant are "GDP per capita", "R&D expenditure public sector", "Venture capital", "Tertiary education", and positively connected to some variables among which the most relevant are: "Government procurement of advanced technology products", "Average annual population growth", "Finance and support", "Human resources", "Marketing or organisational innovators", "Linkages". A clustering was then carried out using the unsupervised k-Means algorithm optimized with the Silhouette coefficient which shows the presence of 2 clusters per value of the Innovation Index. Eight machine learning algorithms has been used for prediction with real data. The Tree Ensemble Regression algorithm has been chosen as best performer. A further prediction has been made with the augmented data. The result shows that the best performing algorithm is Linear Regression with an innovation index value predicted to grow by approximately 3.38%.

• Item Type: MPRA Paper
• Language: English
• Keywords: Innovation, and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Diffusion Processes; Open Innovation.
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O30 - General; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O34 - Intellectual Property and Intellectual Capital

References

AlQararah, K., 2022. Assessing the robustness of composite indicators: The case of the Global Innovation Index.

Andabaka, A., Basarac Sertić, M. & Harc, M., 2019. Eco-innovation and economic growth in the European Union. Zagreb International Review of Economics & Business, 22(2), pp. 43-54.

Bacon, D., Forner, D. & Ozcan, S., 2019. Machine learning approach for national innovation performance data analysis. 8th International Conference on Data Science, Technology and Applications, pp. 325-331.

Boldrin, M. & Levine, D., 2002. The case against intellectual property. American Economic Review, 92(2), pp. 209-212.

Bukreieva, D. S., 2020. Peculiarities of Formation of the Country's Innovative Environment Based on Complex Analysis of Resources of Innovation. Scientific Bulletin of National Mining University, Volume 5.

Costantiello, A., Laureti, L. & Leogrande, A., 2021. The Innovation-Friendly Environment in Europe. SSRN Electronic Journal , https://ssrn.com/abstract=3933553 (http://dx.doi.org/10.2139/ssrn.3933553).

Costantiello, A., Laureti, L. & Leogrande, A., 2021. The Intellectual Assets in Europe. SSRN Electronic Journal , https://ssrn.com/abstract=3956755(http://dx.doi.org/10.2139/ssrn.3956755).

Costantiello, A., Laureti, L. & Leogrande, A., 2021. The SMEs Innovation in Europe. SSRN Electronic Journal , https://ssrn.com/abstract=3964059(http://dx.doi.org/10.2139/ssrn.3964059).

Costantiello, A., Laureti, L., Leogrande, A. & Matarrese, M., 2022. The Innovation Linkages in Europe. International Journal of Entrepreneurship, 26(S4), pp. 1-13 .

Costantiello, A., Laureti, L., Matarrese, M. & Leogrande, A., 2022. The innovation-sales growth nexusin Europe. Academy of Accounting and Financial Studies Journal, 26(2), pp. 1-14.

Costantiello, A. & Leogrande, A., 2020. The innovation-employment nexus in Europe. American Journal of Humanities and Social Sciences Research (AJHSSR), 4(11), pp. 166-187.

Costantiello, A., Leogrande, A. & Laureti, L., 2022. The corporate innovation in Europe. International Journal of Entrepreneurship, 26(S4), pp. 1-9.

Dotta, V. & Munyo, I., 2019. Trade openness and innovation. The Innovation Journal, 24(2), pp. 1-13.

Harsono, A. A. & Fitri, S., 2020. Innovation mindset: SMES vs startups. International Journal of Business and Economy, 2(2), pp. 54-61.

Janoskova, K. & Kral, P., 2019. An in-depth analysis of the summary innovation index in the V4 countries. Journal of competitiveness, 11(68).

Khan, R. & Cox, P., 2017. Country culture and national innovation. Archives of Business Research, 5(2).

Laureti, L., Costantiello, A. & Leogrande, A., 2021. The Finance-Innovation Nexus in Europe. IJISET - International Journal of Innovative Science, Engineering & Technology, 7(12).

Laureti, L., Costantiello, A., Leogrande, A. & Leogrande, D., 2022. Creative Intangible Products andServices for Industry in Europe. Academy of Entrepreneurship Journal, 28(55), pp. 1-9.

Laureti, L., Costantiello, A., Matarrese, M. & Leogrande, A., 2022. Foreign Doctorate Students in Europe. SSRN Electronic Journal, Issue http://dx.doi.org/10.2139/ssrn.4032975.

Laureti, L., Costantiello, A., Matarrese, M. & Leogrande, A., 2022. Enterprises Providing ICT Training in Europe. SSRN Electronic Journal , https://ssrn.com/abstract=4021150(http://dx.doi.org/10.2139/ssrn.4021150).

Laureti, L., Costantiello, A., Matarrese, M. & Leogrande, A., 2022. The Employment in Innovative Enterprises in Europe. SSRN Electronic Journal , https://ssrn.com/abstract=4010098(http://dx.doi.org/10.2139/ssrn.4010098).

Leogrande, A. & Costantiello, A., 2021. Human Resources in Europe. Estimation, Clusterization, Machine Learning and Prediction. American Journal of Humanities and Social Sciences Research (AJHSSR), 5(9), pp. 240-259.

Leogrande, A., Costantiello, A. & Laureti, L., 2021. The Broadband Penetration in Europe. Journal of Applied Economic Sciences, 16(3).

Leogrande, A., Costantiello, A. & Laureti, L., 2021. The Impact of Venture Capital Expenditures on Innovation in Europe. SSRN Electronic Journal , https://ssrn.com/abstract=3930697(http://dx.doi.org/10.2139/ssrn.3930697).

Nomani, M. Z. M. & Hussain, Z., 2020. Innovation technology in health care management in the context of Indian environmental planning and sustainable development. International journal on emerging technologies, 11(2), pp. 560-564.

Omer, M., El-Amin, M., Nasr, A. & Ahmed, R., 2020. Modeling, visualization, and analysis of african innovation performance. arXiv preprint arXiv:2008.07882.

Reich, R. W., Feng, W. & Sheng, S., 2018. Factors of global innovation index. New Orleans, LA., s.n.

Romer, P. M., 1944. The origins of endogenous growth. Journal of Economic perspectives, 8(1), pp. 3-22.

Roszko-Wójtowicz, E. & Białek, J., 2018. Diverse approaches to the multidimensional assessment of innovation in the European Union. Acta Oeconomica, 68(4), pp. 521-547.

Samoilikova, A., 2020. Financial Policy of Innovation Development Providing: The Impact Formalization. Financial Markets, Institutions and Risks, 4(2), pp. 5-15.

Schumpeter, J. A., 1934. The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle. Transaction Publishers, p. 244.

Sener, S. & Delican, D., 2019 . The causal relationship between innovation, competitiveness and foreign trade in developed and developing countries. Procedia Computer Science, Volume 158, pp. 533-540.

Solow, R. M., 1956. A contribution to the theory of economic growth. The quarterly journal of economics, 70(1), pp. 65-94.

Stavbunik, Y. & Pelucha, M., 2019. The innovation system of Kazakhstan in the context of the global innovation index. Innov. J. Public Sector Innov. J.(TIJ), 24(1), pp. 1-24.

Ştefan, R., 2021. Proposing An Aggregated Measurement Of Innovation: The Composite Innovation Index (Cii). Bucharest, Romania , s.n., p. Bucharest.