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Impact of the business environment on national innovation capacity – Empirical study based on OECD countries

Author

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  • He, Pinglin
  • Ma, Yihan
  • Yin, Mingze

Abstract

In the process of improving the innovation capacity of subjects, the key role of improving the business environment has become increasingly prominent. This paper empirically explores the impact of business environment on national innovation capability, its mechanism and the resulting heterogeneity. The results show that improving the business environment has a significant positive impact on a country's innovation capacity, and this impact will be heterogeneous due to the level of economic development. The results of this paper provide reliable empirical evidence to fully clarify the impact of business environment on national innovation capacity, and are crucial to improve national competitiveness, promote economic recovery and high-quality development.

Suggested Citation

  • He, Pinglin & Ma, Yihan & Yin, Mingze, 2025. "Impact of the business environment on national innovation capacity – Empirical study based on OECD countries," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 169-185.
    • Handle: RePEc:eee:ecanpo:v:85:y:2025:i:c:p:169-185
    DOI: 10.1016/j.eap.2024.11.022
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    More about this item

    Keywords

    Business environment; National innovation capacity; Industrial structure; Ordered probit model; CMP estimation method;
    All these keywords.

    JEL classification:

    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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