A Roadmap for Innovation Capacity in Developing Countries

Abstract

Innovation capacity is a dynamic capacity linked with the achievement of competitive advantage. Several mechanisms have been proposed to evaluate this capacity. However, developing innovation capacity is a complex process, particularly for developing countries, due to the intricacy of its determinants. Hence, this research analyzes the interlinkages between the key determinants driving this capacity to further propose a continuous path for its growth. A comprehensive review of the literature regarding assessing mechanisms for innovation capacity was conducted, which included 14 key innovation determinants. From a contextual and systematic approach, interpretive structural modelling was employed to determine the interlinkages of these determinants and classified as drivers or dependent. Ten levels or steps were drawn from level partitioning of the final reachability matrix. The results show the relevance of promoting and protecting innovation and intellectual property as the ground to develop this capacity. In addition, R&D investment and university–industry collaboration contribute to the consolidation of innovation systems. Utility models, patents, trademarks, and institution prominence are the result of this loop of innovation capacity development. From these findings, policymakers, practitioners, and scholars can draw a sustained roadmap to enhance this dynamic capacity in their countries.

O papel do Investimento Direto Estrangeiro para o desenvolvimento da Capacidade Inovadora na Indústria de Energia Eólica Offshore Brasileira

“…Furthermore, FDI and its flow intensify the regulation of the domestic market, favoring the renewable energy scenario. In parallel with the results obtained, the literature indicates that capital flows can be determinant for companies focused on the energy sector to be able to innovate through specific capabilities in contexts that lack regulations to accommodate technologies such as offshore wind or energy storage (Azam & Haseeb, 2021;Novillo-Villegas et al, 2022). This association matches our Propositions 1 and 2.…”

“…The varied perspectives in the literature about IC carry several elements in common (Tang, 1998;Wang and Ahmed, 2007;Smith et al, 2008;Vasconcelos, 2008;Novillo-Villegas, Ayala-Andrade, Lopez-Cox, Salazar-Oyaneder, & Acosta-Vargas, 2022). In this paper, categorical concepts will be emphasized according to Valladares, Vasconcellos, and Di Serio (2014) The concept of People Management for Innovation is linked to practical studies of organizational culture and social structures and reflects the autonomy acquired through leadership and how it impacts the relationship with employees, promotes freedom to innovate, and gives room to new, challenging goals that can be achieved by compiling different ideas and knowledge (Amabile, Schatzel, Moneta and Kramer, 2004).…”

“…According 2014) claim that to generate innovation capacity, organizations must articulate their management capabilities of people, projects, and strategies for technological innovation, hence strengthening the way they engage with new opportunities (Lopes et al, 2021;Novillo-Villegas et al, 2022).…”

Exploring the factors for open innovation in post-COVID-19 conditions by fuzzy Delphi-ISM-MICMAC approach

“…Moreover, the study further revealed that innovation implementation showed high dependence but low driving power, whereas strategic resources acted as a linkage factor. Using the ISM-MICMAC approach (Novillo-Villegas et al ., 2022; Hajiagha et al ., 2022), showed that the promotion and protection of innovation and intellectual property are relevant in paving the way for the development of innovation capacity.…”

“…For high market saturation (F6), this study indicates that the managerial authorities of the manufacturing industry have limited knowledge about the market and their competitors. Therefore, firms hesitate to take the next step toward the open innovation process due to insufficient knowledge about the market(Novillo-Villegas et al ., 2022). The factors of level 3 lead to level 2.…”