Worldwide effect of business environment factors on innovation

• Autor(a) principal: Nunes, Alcina
• Data de Publicação: 2022
• Outros Autores: Savosh, Kateryna
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10198/27110
• topic: Innovation; Business environment factors; Global entrepreneurship monitor (GEM); Panel data methodology

Innovation is considered one of the main drivers of the economic development of countries and a foundation of the companies' competitive advantage. The literature argues it is vital for SMEs' survival. The identification of companies innovation drivers rely on understanding how a country's business environment impacts business innovation. So, this research work aims to identify and quantify which business environment characteristics have influenced worldwide business innovation activity in the last years. This goal will be reached using a panel data econometric methodology applied to the Global Entrepreneurship Monitor (GEM) data for a period of ten years until 2017. This study concludes that factors such as financing, government support, lower taxes and bureaucracy, entrepreneurship education in primary and secondary levels, and economic openness positively affect business innovation worldwide.