Uncovering the Innovation Productivity of Asian Countries: A Cluster Analysis Approach

Abstract

The interplay of quality education in science and mathematics, university-industry collaboration in research and development, and a number of patents acquired dictates a country’s level of innovation in the global economy. The study explored the innovation efficiency of thirty Asian countries with an attempt to group the nations with similar characteristics and uncover essential associations. Some variables from the Global Competitiveness Index 2017-2018 and the Global Innovation Index 2018 were used as multivariate inputs to the cluster analysis algorithm. Results revealed that there were three clusters of countries derived. Countries with low innovation, six in number, had small scores in the different variables that need to be improved. On the other hand, nations with high innovation, four in number, had the best scores in all the indicators. Further, the twenty countries with average innovation have to continue boosting its quality of Mathematics and Science education and university-industry partnership. Regression models of the different clusters were derived to supplement the results. Much is to be done on the patenting to be at par with the highly innovative countries in the world. In addition, to lessen the innovation gap,nationswithhighinnovationmayhelpthecountrieswithlowinnovationproductivitywhich is possible due to existing regional intergovernmental organizations in Asia like Association of Southeast Asian Nations (ASEAN), Southeast Asian Ministers of Education Organization (SEAMEO),andthelike.