Data Analysis and Applications 2

2 Analysis of the Determinants and Outputs of Innovation in the Nordic Countries

In this chapter, we discuss the European Nordic countries (Denmark, Finland, Iceland, Norway and Sweden), which are referred to by the European Commission as countries with high innovation performance.

The analyzed panel data concern the period between 1999 and 2014, and how different inputs of innovation affect the different outputs was studied.

The “innovation” variable was constructed using factor analysis, given that the Organization for Economic Co-operation and Development considers that innovation is the result of a set of macromeasures common to different countries. The factor obtained through the exploratory factor analysis represents the results of innovative activity and economic performance.

How the quality of human capital, the research and development efforts carried out by different economic agents affect the results of innovation was analyzed. It was possible to conclude that countries with a higher proportion of applied research and more cooperation between research carried out by companies, universities and the government lead to better economic results and to higher outcomes of intellectual property.

2.1. Introduction

Innovation is a central theme in current literature and the recognition of its importance has increased over the last few decades. As Porter (2007) has pointed out, innovation has become the challenge that defines global competitiveness.

Panel data refer to a sectional ...