Inovasi, Pengantarabangsaan dan Keupayaan Menyerap di Negara Muslim: Bukti Baharu daripada Pendekatan Poisson dan Binomial Negatif

The motivation of this study is to focus on the concept of ‘pull effect of ICT’ and ‘push effect of FDI’ in influencing innovation. This study hypothesized the influence of internationalization on innovation may vary according to the level of absorptive capacity of the Muslim countries. The term of internationalization is often associated with import, export and foreign direct investment (FDI). While absorptive capacity is the capability of a country to identify, understand and commercialize knowledge. In other words, countries that have greater levels of internationalization but with lower levels of absorptive capacity may adversely affect innovation activities. Hence, the objective of this study is to investigate whether absorptive capacity and internationalization advance the development of innovation activity in the Muslim countries. Count model, namely Poisson model and negative binomial model will be used to estimate the cross-section data from the year 2000 to 2016. The results show that the positive impact of internationalization on innovation depends on the absorptive capacity, namely ICT development. Therefore, this suggests that the policies to enhance internationalization need to be followed by a continuous commitment in absorptive capacity growth to stimulate the innovation process in Muslim countries.