Impact of the business environment on national innovation capacity – Empirical study based on OECD countries

Pinglin He, Yihan Ma and Mingze Yin

Economic Analysis and Policy, 2025, vol. 85, issue C, 169-185

Abstract: In the process of improving the innovation capacity of subjects, the key role of improving the business environment has become increasingly prominent. This paper empirically explores the impact of business environment on national innovation capability, its mechanism and the resulting heterogeneity. The results show that improving the business environment has a significant positive impact on a country's innovation capacity, and this impact will be heterogeneous due to the level of economic development. The results of this paper provide reliable empirical evidence to fully clarify the impact of business environment on national innovation capacity, and are crucial to improve national competitiveness, promote economic recovery and high-quality development.

Keywords: Business environment; National innovation capacity; Industrial structure; Ordered probit model; CMP estimation method (search for similar items in EconPapers)
JEL-codes: F64 O30 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:85:y:2025:i:c:p:169-185

DOI: 10.1016/j.eap.2024.11.022

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