Moderate Innovator Trap—Does the Convergence of Innovation Performance Occur in the World Economy?

Arkadiusz Michał Kowalski and Jakub Rybacki
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Arkadiusz Michał Kowalski: SGH Warsaw School of Economics, Collegium of World Economy, 02-521 Warsaw, Poland

Economies, 2021, vol. 9, issue 1, 1-12

Abstract: Based on ? and ? convergence analysis, we find a high persistence of innovation gaps for international innovation indices reported by the European Commission. Our research confirms the diverging scientific potential across the analyzed economies. Estimation provides evidence of convergence in the case of R&D expenses and the relative position on the global technological frontier. We propose a simple fixed effect panel regression measuring relative innovativeness potential. Our model suggests that current ranking leaders, i.e., Nordic countries (Sweden, Denmark, and Finland) and Germany, are likely to further outpace the United States. Central and Eastern European countries are achieving the greatest relative gains but are unlikely to exceed 70% of US potential. Peripheral European countries, South Africa, Turkey, and Russia are projected to further lose their innovativeness position despite their weaker initial position.

Keywords: ? convergence; ? convergence; innovation; moderate innovators (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:9:y:2021:i:1:p:11-:d:491148

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