Understanding the determinants of innovation across European member states: a fuzzy-set approach

Abstract

Purpose The European Innovation Scoreboard is an important indicator of innovation performance across European Member States. Despite its wide application, the indicator fails to highlight the interlinkages that exist among innovation measures and focuses primarily on the linear relationship between the individual measures and the predicted outcome. This study aims to address this gap by applying a novel technique, the fuzzy-set qualitative comparative analysis (fsQCA), to shed light on these interlinkages and highlight the complexity of the determinants underlying innovation performance. Design/methodology/approach The authors adopted a configurational approach based on fsQCA that is implemented on innovation performance data from European Member States for the period 2011–2018. The approach is based on non-linearity and allows for the analysis of interlinkages based on equifinality, that is, the model recognises that there are different potential paths of high and low innovation performance. In addition, the approach allows for asymmetric relations, where a low innovation outcome is not the exact inverse of that which leads to high innovation outcome. Findings The results clearly indicate that innovation outcomes are not based on simple linear relations. Thus, to reap the desired effects from investments in innovation inputs, the complex set of indicators on which innovation performance is based should be taken into consideration. The results clearly indicate the elements of equifinality and asymmetric relations. Different paths lead to high innovation performance and low innovation performance. Originality/value The method applied to investigate the determinants of innovation performance is the prime original factor of this study. Thus, the study contributes to literature by highlighting the complexity involved in understanding innovation. By recognising and attempting to detangle this complexity, this study will assist not just academics but also policymakers in designing the necessary measures required to reach this important outcome for a country’s competitive edge.