The Economics and Econometrics of Global Innovation Index

Abstract

Innovation is understood by different people differently and there is no reason to think otherwise until and unless innovation is objectified. Several measures have been developed to represent innovation in one or the other form. At times, due to dearth of data on innovation, proxies are used that may not represent innovation in its true sense. One of such measure, though unpopular but relevant, is global innovation index (GII). Indexes are used to quantify as well as measure the variability over a period of time in comparison to base values. As the approach of GII is new and promising, the present chapter will attempt to understand the economics of global innovation index for the available data. This will add to the understanding of innovation and may act as a strategy. On the other hand, econometrics as an emerging branch will also be used to identify certain simple hypothesis for the data of global innovation index. The chapter thus aims to delve deeper into the understanding of global innovation index.