National Innovation Capacity and Economic Growth: A Global Empirical Analysis


  • Shuyu Xu



Global innovation index; Innovation situation analysis; Schumpeter; Price impact.


In recent years, building an innovative country has gradually become a hot topic in the international community. Relying on scientific and technological innovation to increase their core competitiveness has become an objective requirement of all economies. Therefore, starting from Schumpeter's theory, this paper takes 41 countries from 2011 to 2021 as samples to investigate the impact of national innovation capacity on their economic growth, the intermediary role of price level in the main relationship, and the heterogeneity of developed and developing countries after analyzing the pattern of innovation capacity of countries in the world. This paper uses the global innovation index and the CPI of various countries for empirical analysis. The empirical results show that countries with high GII scores are more likely to have a good economic growth; The lower consumer price level has a positive effect on the GII to influence the economic growth; Scientific and technological progress in developed countries is more conducive to economic growth. This study mainly discusses the impact of innovation ability on economic growth and adds content to relevant literature to help countries think about their innovation level and change ways.


Download data is not yet available.


B.-Å. Lundvall, B. Johnson, E. S. Andersen, & B. Dalum, National systems of production, innovation and competence building. Research policy, vol. 31, no. 2, 2002, pp. 213 - 231.

J. H. Mittelman, Rethinking the international division of labour in the context of globalisation. Third World Quarterly, vol. 16, no. 2, 1995, pp. 273 - 296.

A. Ebner, Schumpeterian entrepreneurship revisited: historical specificity and the phases of capitalist development. Journal of the History of Economic Thought, vol. 28, no. 3, 2006, pp. 315 - 332.

X. Fu, C. Pietrobelli, & L. Soete, the role of foreign technology and indigenous innovation in the emerging economies: technological change and catching-up. World development, vol. 39, no. 7, 2011, p p. 1204 - 1212.

E. S. Reinert, The role of the state in economic growth. Journal of economic Studies. 1999.

P. Ghisellini, C. Cialani, & S. Ulgiati, A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner production, vol. 114, 2016, pp. 11 - 32.

Y. Qian, do national patent laws stimulate domestic innovation in a global patenting environment? A cross-country analysis of pharmaceutical patent protection, vol. 89, no. 3, 2007, pp. 436 - 453.

P. Moser, how do patent laws influence innovation? Evidence from nineteenth-century world's fairs. American economic review, vol. 95, no. 4, 2005, pp. 1214 - 1236.

W. Ferrier, K. G. Smith, & C. M. Grimm, The role of competitive action in market share erosion and industry dethronement: A study of industry leaders and challengers. Academy of management journal, vol. 42, no. 4, 1999, pp. 372 - 388.

G. D. Markman, P. T. Gianiodis, P. H. Phan, & D. B. Balkin, Innovation speed: Transferring university technology to market. Research policy, vol. 34, no. 7, 2005, pp. 1058 - 1075.

P. F. Drucker, The discipline of innovation. Harvard business review, vol. 76, no. 6, 1987, pp. 149 - 157.

K. Kaygusuz, Energy for sustainable development: A case of developing countries. Renewable and Sustainable Energy Reviews, vol. 16, no. 2, 2012, pp. 1116 - 1126.

S. Lall, Technological capabilities and industrialization. World development, vol. 20, no. 2, 1992, pp. 165 - 186.

A. Omri, Technological innovation and sustainable development: does the stage of development matter? Environmental Impact Assessment Review, vol. 83, 2020, pp. 106398.

E. Berman, J. Bound, & S. Machin, Implications of skill-biased technological change: international evidence. The quarterly journal of economics, vol. 113, no. 4, 1998, pp. 1245 - 1279.

A. Bloch, Refugees in the UK labour market: The conflict between economic integration and policy-led labour market restriction. Journal of Social Policy, vol. 37, no.1, 2008, pp. 21 - 36.

C. Wheelan, Wheelan, C. (2019). Naked economics: Undressing the dismal science: WW Norton & Company.

[18] B. Jankowska, A. Matysek-Jędrych, & K. Mroczek-Dąbrowska, Efficiency of national innovation systems: Poland and Bulgaria in the context of the Global Innovation Index. Comparative Economic Research, vol. 20, no. 3, 2017, pp. 77 - 94.

M. Oturakci, Comprehensive analysis of the global innovation index: statistical and strategic approach. Technology Analysis & Strategic Management, pp. 1 - 13.

J. Frankel, & A. Rose, An estimate of the effect of common currencies on trade and income. The quarterly journal of economics, vol. 117, no. 2, 2002, pp. 437 - 466.

F. Wan, P. J. Williamson, & E. Yin, Antecedents and implications of disruptive innovation: Evidence from China. Technovation, vol. 39, 2015, pp. 94 - 104.

P. Windrum, & M. García-Goñi, A neo-Schumpeterian model of health services innovation. Research policy, vol. 37, no. 4, 2008, pp. 649 - 672.




How to Cite

Xu, S. (2023). National Innovation Capacity and Economic Growth: A Global Empirical Analysis. BCP Business & Management, 36, 197–206.