The effects of technological and social capabilities on innovation capacity

In this study, the impacts of technological and social capability components on innovation capacity both in developed and developing countries are investigated by panel data analysis. Technological capability is represented by R&D expenditures, R&D personnel and the university-industry collaboration. As for social capability components, human capital, described as the level of higher education and training and protection of intellectual property rights are selected. As the indicator of innovation, firm innovation capacities prepared across countries are used. The span of the study includes the time between 2006 and 2014. The variables in the study have been borrowed from Global Competitiveness Report by World Economic Forum. In light of the findings, R&D expenditures and intellectual property rights are important factors for both developing and developed countries. R&D personnel and university-industry collaboration are influential mostly in developing countries while human capital is more effective in developed countries.