HOW DOES THE GLOBAL INNOVATION INDEX SCORE AFFECT INCOME? A POLICY FOR INNOVATIVENESS

Abstract

Innovation has been a well-known fact for competition. Countries need to pursue a number of policies and take steps to be considered innovative. The aim of this study is to investigate the contribution of factors constituting the Global Innovation Index (GII), which serves as an indicator of countries’ innovativeness, to the economic level thereof and to draw a road map for the developing countries. Regression analysis was employed to evaluate the effects of the sub-factors that make up the GII score on the countries' GDP per capita. As a result, three factors were found to have a significant effect: Research and development (R&D), the countries' political environments and their general infrastructure have been found to have a significant effect on the economy. This study not only assists developing countries in determining their innovation policies, but also in identifying their deficiencies in order to improve their innovation levels. Thus, focusing on the factors that contribute the most to the country's economy, it will be possible to contribute to the economic level of the country more quickly and effectively. Since R&D studies are mostly done in universities, universities in particular should provide more resources to this unit. This research is significant because it highlights the need for private universities to develop R&D strategies in order to boost their competitiveness, provide laboratories and infrastructure with the necessary machinery and equipment, and retain outstanding researchers.