National Innovation Capacity and Economic Growth: A Global Empirical Analysis

Abstract

In recent years, building an innovative country has gradually become a hot topic in the international community. Relying on scientific and technological innovation to increase their core competitiveness has become an objective requirement of all economies. Therefore, starting from Schumpeter's theory, this paper takes 41 countries from 2011 to 2021 as samples to investigate the impact of national innovation capacity on their economic growth, the intermediary role of price level in the main relationship, and the heterogeneity of developed and developing countries after analyzing the pattern of innovation capacity of countries in the world. This paper uses the global innovation index and the CPI of various countries for empirical analysis. The empirical results show that countries with high GII scores are more likely to have a good economic growth; The lower consumer price level has a positive effect on the GII to influence the economic growth; Scientific and technological progress in developed countries is more conducive to economic growth. This study mainly discusses the impact of innovation ability on economic growth and adds content to relevant literature to help countries think about their innovation level and change ways.