Peer-Reviewed Journal Details
Mandatory Fields
Doyle Eleanor and O'Connor Fergal A.
Research in International Business and Finance
Innovation capacities in advanced economies: Relative performance of small open economies
Optional Fields
Innovation Patents Research and Development R&D Small open economy

This paper offers an empirical examination of the determinants

of a nationís ability to produce commercially viable innovations,

measured as Patents Granted across a sample of 23 advanced

economies. The approach employed is based on estimating National

Innovative Capacity that focuses on the long-run ability of

economies to produce and/or commercialise innovative technologies,

in the spirit of Furman et al. (2002). The time period of our

analysis covers 1993 to 2005 and employs panel estimation.

Motivated by differences in the rate of innovation between

economies with different economic structures we examine the

Small Open Economies (SOEs) in our country sample to assess

whether there is a significant difference between the determinants

of Innovative Capacity in SOEs and the other larger developed


We find that advanced SOEs and larger economies do not differ

substantially in their determinants of producing innovative

technologies and, notwithstanding the limitations of Patents as

measures of innovative activity, we conclude that policy choice and

variation plays a key role in determining the productivity of R&D,

when measured as patenting activity.
Grant Details