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Sustaining the Path for Innovation Capability from a Developing Country Perspective: A Conceptual Framework

Abstract:

Innovation capability contributes to the competitiveness of a country. However, due to the multi-faceted nature of this dynamic capability, its development is considered a risky task. Thus, it is critical to concentrate the efforts on the determinants that might provide a higher impact on sustaining the development of this capability, particularly for a developing country with limited resources. This work presents a systematic literature review examining 14 innovation determinants to advance the understanding of their impact on countries’ innovation capability. This research studied the literature by qualitative strategies to categorize and contextualize the findings. It also includes the contribution made by experts from a developing country through interviews. The selected publications and the interviews provided fundamental elements to identify the impact and linkages of the innovation determinants on the development of innovation capability. From here, a conceptual framework is outlined proposing an incremental loop that encompasses five stages: (1) government support, (2) implementation of innovation agencies, (3) R&D projects between U-I, (4) innovation clusters development, and (5) innovation output achievement. These stages systematize practical strategies regarding the 14 determinants posing a path to sustain the growth of this capability in the context of developing countries, contributing from theoretical and practical standpoints.