The Global Innovation Index analysis in Russia using the Structural equation model

Abstract

The Global Innovation Index (GII) was developed to track innovation potential and efficiency in the country, by utilizing specified inputs and outputs parameters. However, take into account any structural links among elements affecting a country's achievement. We proposed in this study a structural equation model (SEM) based on the hypothesized innovation structure between seven indicators, representing inputs that contain institutions, human capital and research, infrastructure, market sophistication, and business sophistication. And outputs which are represented by knowledge and technology outputs, and creative outputs. By using the GII data from 2012 to 2021 in Russia, we discovered that knowledge and technology outputs, as well as infrastructure, have the largest direct and indirect influence on creative outputs and market sophistication, respectively. Also, we found a significant effect of institutions on market sophistication, and a great effect from infrastructure on institutions, and human capital and development. And while innovation is so important for economic growth, it is necessary to increase knowledge absorption to improve innovation performance. Also, for environmental considerations, such as ecological sustainability, as well as the indirect effect on Market sophistication)