Import of Goods and Services as a Stimulus for a Better National Innovation Performance in EU Member States

Abstract

A remarkable increase in the attention devoted to national innovative capacity (NIC) has been noticed over the last decades. There is a strong debate whether a country’s national innovative capacity is solely determined by local factors or it is also influenced by global network position and international economic activities. Furthermore, despite its importance, there is a lack of studies which take the variables of non-technological innovations into account. This paper aims to fill the empirical research gap by focusing on import of goods and services as an input of NIC and engaging non-technological innovations as an output in NIC models. An investigation of 28 European Union member states in the period of 2007–2017 shows that the international transmission of knowledge through import spillovers has a positive effect on trademark applications, design applications and exports of high-tech products. The findings help to better understand the role of international trade in enhancing national innovative capacity.