Openness as a Factor of Innovation
A Panel Data Analysis
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Governments around the world have already recognized innovation as a driver of growth. The influence of technological change in the development of economies focuses more and more the political discussions by highlighting the need to accomplish policies fostering innovation. Researchers and policymakers are interested in finding out the determinants of innovativeness. However, we deal with a complex phenomenon in which multiple factors are involved. By getting knowledge about these determinants, we will be able to accomplish proper policies promoting innovation. On the other hand, world is faci...
Governments around the world have already recognized innovation as a driver of growth. The influence of technological change in the development of economies focuses more and more the political discussions by highlighting the need to accomplish policies fostering innovation. Researchers and policymakers are interested in finding out the determinants of innovativeness. However, we deal with a complex phenomenon in which multiple factors are involved. By getting knowledge about these determinants, we will be able to accomplish proper policies promoting innovation. On the other hand, world is facing a globalization process with higher trade liberalization and capital mobility. The economic and social implications of this process are diverse. This international movement towards more open markets has increased the circulation of ideas across national borders. The need to adapt to higher degrees of competitiveness may push economies to become innovators. In this sense, this study analyses whether the opening up of markets to international competition may influence the achievement of innovations by boosting countries to increase their innovative activities.
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