Configurational differences of national innovation capability: a fuzzy set qualitative comparative analysis approach

Abstract

ABSTRACT Building on the national innovation system perspective, this study proposes an improved framework including five dimensions: institutions, human capital and research, infrastructure, market sophistication, and business sophistication. Based on the Global Innovation Index report, we use a fuzzy set qualitative comparative analysis approach (fsQCA) to determine the configurational differences of high innovation performance between countries with different income levels (high income, upper-middle income and lower-middle income). The results show that a same core configuration of conditions exist between high income and upper-middle income countries. These conditions are a good institutional environment, a high level of human capital research, supporting infrastructure and a mature business environment, which can drive high and upper-middle income countries to achieve high innovation performance. However, in lower-middle income countries, there are three configurations of conditions that are completely different from that of the high income and upper-middle income groups. These results suggest that the policies for improving national innovation levels need to be different for each income group. The significance of the results for theory and practice is also discussed.