The Linkage between Input and Output in the Innovation Ecosystem
An innovation ecosystem is characterized by numerous interactions between its various components. The proper functioning of an innovation ecosystem is a necessary condition to increase the chances of successful innovative activities. This research aims to investigate the relationship between input and output in the innovation ecosystem of countries. For the empirical evaluation, the Global Innovation Index (GII) was used as a proxy of the innovation ecosystem. This index tracks innovation inputs and innovation products in various countries. Using annual country data, an unconditional quantile regression model was estimated to identify the structural relationship between innovation input and output, including with lag application. Our findings show that innovation input has a significant and positive effect on innovation output in countries. These findings are useful for national innovation policies, since they emphasize the need to promote better innovation incentives.
