Abstract
Purpose The purpose of this paper is to observe how to invest in upper-middle income countries via an innovation perspective following global innovation index (GII) by multicriteria decision aid (MCDA) approach, once MCDA was designed to support subjective decisions. Design/methodology/approach Pearson’s correlation was the milestone for understanding innovation indicators at upper-middle income countries profiles. In a MCDA first step, the analytical hierarchy process (AHP) was applied to obtain the criteria weight. In this step, the judgments or evaluations inputted in AHP were collected from a sample composed by five experts in GII. After getting the criteria weights compose to GII, Borda and Preference Ranking Organization Method for Enrichment Evaluations (PROMÉTHÉE) methods were applied to obtain an MCDA-based GII. The inputs for this second step were: the weights come from AHP output; and the countries performance came from GII data. Findings As a result, it was found out the upper-middle countries’ rank to invest and groups with countries acting like “hubs” or “bridges” for economic sectors in near countries; when they are grouped according to their maximum and minimum scores profiles, observing not only a particular region but also similar profiles at diverse world areas. Originality/value Pearson-AHP-PROMÉTHÉE works as a supportive decision tool for several and complex investment perspectives from criteria and alternatives analysis regarding innovation indicators for upper-middle income countries. This combination also demonstrates grouping possibilities, aligning profiles and not only ranking countries for investment and eliminating others but also grouping countries with similar profiles via innovation indicators MCDA combined application.
Highlights
The global innovation index (GII) is a yearly report where innovative countries are analyzed and ranked considering their innovative profile
As the qualitative data, according to GII 2016, was aligned with the quantitative result of the pilot project, analysts keep on calculating the multicriteria decision aid (MCDA) using analytical hierarchy process (AHP)-PROMÉTHÉE and GAIA
Conclusion and final considerations The question proposed by this paper was answered with the combined tools MCDA, AHPPROMÉTHÉE II giving opportunity for investing in upper-middle income countries
Summary
The global innovation index (GII) is a yearly report where innovative countries are analyzed and ranked considering their innovative profile. It is adopted by the World Intellectual Property Organization (WIPO) for observing innovative tendencies regarding countries and their perspectives via seven innovation indicators, where five are innovation input. 2.1 Global innovation indicators As reported by Cornell University, INSEAD, and WIPO (2016), the GII (edition 2016) is composed of 82 indicators covering 16 composed indicators, 5 survey questions and 61 raw data dimensions of innovative skills of the countries. The results will be presented according to decision-makers’ (DM) expectations taking into consideration the possibility of these countries to be part of a group of investment receivers according to their innovation indicators.
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