IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i18p10241-d634960.html
   My bibliography  Save this article

Innovation as a Determinant of Growth in Outperforming Emerging Markets: An Analysis of South Korea

Author

Listed:
  • Tina Maria Hintringer

    (Business in Emerging Markets Program, FH Joanneum University of Applied Sciences, 8025 Graz, Austria)

  • Vito Bobek

    (Business in Emerging Markets Program, FH Joanneum University of Applied Sciences, 8025 Graz, Austria)

  • Franko Milost

    (Faculty of Management, University of Primorska, 6000 Koper, Slovenia)

  • Tatjana Horvat

    (Faculty of Management, University of Primorska, 6000 Koper, Slovenia)

Abstract

Emerging economies and their speed of growth, competitiveness, and resilience are of great interest globally due to the high potential investors see in them. Innovation is one of the factors recognized to be the common ground of significantly outperforming economies. Therefore, identifying innovation benchmarks and how they impact economic success is relevant for a more straightforward evaluation of innovation in a country. This research focuses on the quantitative parts of innovation. Firstly, governmental interference, knowledge flows and networks, cultural and societal preconditions, and openness towards change are identified as notably relevant innovation enhancing factors in South Korea through case study analyses. Then, an analysis of the impact of quantitative innovation factors on the GDP in South Korea is conducted. The impact of quantifiable innovation factors, identified through literature review, on the GDP as the benchmark for economic growth is tested from 1995 until 2018 through a linear, multiple least squares regression to identify significant relationships between the chosen variables. Two out of five selected quantitative innovation factors have a statistically significant impact on the economic growth in the used model. The number of researchers per million people and the patent grants of residents is identified to be impactful innovation benchmarks.

Suggested Citation

  • Tina Maria Hintringer & Vito Bobek & Franko Milost & Tatjana Horvat, 2021. "Innovation as a Determinant of Growth in Outperforming Emerging Markets: An Analysis of South Korea," Sustainability, MDPI, vol. 13(18), pages 1-23, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10241-:d:634960
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/18/10241/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/18/10241/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Madan Lal Bhasin & Junaid M. Shaikh, 2013. "Economic value added and shareholders' wealth creation: the portrait of a developing Asian country," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 5(2), pages 107-137.
    2. Dziallas, Marisa & Blind, Knut, 2019. "Innovation indicators throughout the innovation process: An extensive literature analysis," Technovation, Elsevier, vol. 80, pages 3-29.
    3. Matteo Rossi, 2015. "The role of venture capital funds in financing innovation in Italy. Constraints and challenges for innovative small firms," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 7(2), pages 162-180.
    4. J. Wilson Mixon & William D. Sockwell, 2007. "The Solow Growth Model," The Journal of Economic Education, Taylor & Francis Journals, vol. 38(4), pages 483-483, September.
    5. Runfola, Andrea & Perna, Andrea & Baraldi, Enrico & Gregori, Gian Luca, 2017. "The use of qualitative case studies in top business and management journals: A quantitative analysis of recent patterns," European Management Journal, Elsevier, vol. 35(1), pages 116-127.
    6. Edward Barbier, 1999. "Endogenous Growth and Natural Resource Scarcity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(1), pages 51-74, July.
    7. Carl-Johan Dalgaard & Mr. Lennart Erickson, 2006. "Solow Versus Harrod-Domar: Reexamining the Aid Costs of the First Millennium Development Goal," IMF Working Papers 2006/284, International Monetary Fund.
    8. Yang, Chih-Hai, 2006. "Is innovation the story of Taiwan's economic growth?," Journal of Asian Economics, Elsevier, vol. 17(5), pages 867-878, November.
    9. K. Sudhir & Joe Priester & Matt Shum & David Atkin & Andrew Foster & Ganesh Iyer & Ginger Jin & Daniel Keniston & Shinobu Kitayama & Mushfiq Mobarak & Yi Qian & Ishani Tewari & Wendy Wood, 2015. "Research Opportunities in Emerging Markets: an Inter-disciplinary Perspective from Marketing, Economics, and Psychology," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(4), pages 264-276, December.
    10. Andreas Wörgötter & Christopher Loewald & Konstantin Makrelov, 2021. "Addressing low labour utilisation in South Africa," Working Papers 27, Economic Research Southern Africa.
    11. Vikas Gupta & Asha Thomas, 2019. "Fostering tacit knowledge sharing and innovative work behaviour: an integrated theoretical view," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 11(3/4), pages 320-346.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wadim Strielkowski & Svetlana Kalyugina & Victor Fursov & Oxana Mukhoryanova, 2023. "Improving the System of Indicators for Assessing the Effectiveness of Modern Regional Innovation Systems," Economies, MDPI, vol. 11(9), pages 1-21, September.
    2. Xionghe Qin, 2022. "The Impact of Interregional Collaboration on Multistage R&D Productivity and Their Interregional Gaps in Chinese Provinces," Mathematics, MDPI, vol. 10(8), pages 1-17, April.
    3. Josef Abrhám & Milan Vošta, 2022. "Impact of the COVID-19 Pandemic on EU Convergence," JRFM, MDPI, vol. 15(9), pages 1-14, August.
    4. Estevão, João & Lopes, José Dias & Penela, Daniela, 2023. "SDG9 and the competitiveness: Employing mixed methods to understand how countries can use science to compete," Technological Forecasting and Social Change, Elsevier, vol. 187(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brausmann, Alexandra & Bretschger, Lucas, 2018. "Economic development on a finite planet with stochastic soil degradation," European Economic Review, Elsevier, vol. 108(C), pages 1-19.
    2. Grimaud, Andre & Rouge, Luc, 2003. "Non-renewable resources and growth with vertical innovations: optimum, equilibrium and economic policies," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 433-453, March.
    3. Quevedo Cascante, Mónica & Acosta García, Nicolás & Fold, Niels, 2022. "The role of external forces in the adoption of aquaculture innovations: An ex-ante case study of fish farming in Colombia's southern Amazonian region," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    4. Bentivoglio, Deborah & Bucci, Giorgia & Belletti, Matteo & Finco, Adele, 2022. "A theoretical framework on network’s dynamics for precision agriculture technologies adoption," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 60(4), January.
    5. Merugu Venugopal & Bhanu Prakash Sharma G. & Ravindar Reddy M., 2018. "Impact of Capital Structure on Shareholder Value in Indian Pharmaceutical Industry: An Empirical Approach Through Created Shareholder Value," Global Business Review, International Management Institute, vol. 19(5), pages 1290-1302, October.
    6. Grimaud, Andre & Rouge, Luc, 2005. "Polluting non-renewable resources, innovation and growth: welfare and environmental policy," Resource and Energy Economics, Elsevier, vol. 27(2), pages 109-129, June.
    7. Nils Grashof, 2020. "Sinking or swimming in the cluster labour pool? A firm-specific analysis of the effect of specialized labour," Jena Economics Research Papers 2020-006, Friedrich-Schiller-University Jena.
    8. Bakari, Sayef, 2021. "Do researchers affect economic growth?," MPRA Paper 108788, University Library of Munich, Germany.
    9. Sangaralingam Ramesh, 2008. "China's Transition to a Knowledge Economy," Working Papers 161, Department of Economics, SOAS University of London, UK.
    10. Murphree, Michael & Petersen, Bui & Warrian, Peter & Gosine, Ray, 2022. "Scope and scale of technology challenge and MNE subsidiary knowledge sourcing in host countries," Technovation, Elsevier, vol. 116(C).
    11. Othmani, Abdelhafidh & Ben Yedder, Nadia & Bakari, Sayef, 2023. "The Cointegration Relationship between Patent, Domestic Investment and Economic Growth in United States of America," MPRA Paper 118245, University Library of Munich, Germany.
    12. Ali Ihsan Akgun & Famil Samiloglu & Ali Osman Oztop, 2018. "The Impact of Profitability on Market Value Added: Evidence from Turkish Informatics and Technology Firms," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 105-112.
    13. Maciej Malaczewski, 2018. "Natural Resources As An Energy Source In A Simple Economic Growth Model," Bulletin of Economic Research, Wiley Blackwell, vol. 70(4), pages 362-380, October.
    14. Mugabe Roger & Liu Shulin & Brima Sesay, 2022. "ICT Development, Innovation Diffusion and Sustainable Growth in Sub-Saharan Africa," SAGE Open, , vol. 12(4), pages 21582440221, October.
    15. Agnani, Betty & Gutierrez, Maria-Jose & Iza, Amaia, 2005. "Growth in overlapping generation economies with non-renewable resources," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 387-407, September.
    16. Ashish Kumar Jha & Indranil Bose, 2021. "Linking Drivers and Outcomes of Innovation in IT Firms: The Role of Partnerships," Information Systems Frontiers, Springer, vol. 23(6), pages 1593-1607, December.
    17. Davine N. G. Janssen & Eunice Pereira Ramos & Vincent Linderhof & Nico Polman & Chrysi Laspidou & Dennis Fokkinga & Duarte de Mesquita e Sousa, 2020. "The Climate, Land, Energy, Water and Food Nexus Challenge in a Land Scarce Country: Innovations in the Netherlands," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
    18. Rim Zouari‐Hadiji, 2023. "Financial innovation characteristics and banking performance: The mediating effect of risk management," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1214-1227, April.
    19. Brewis, Claire & Dibb, Sally & Meadows, Maureen, 2023. "Leveraging big data for strategic marketing: A dynamic capabilities model for incumbent firms," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    20. Fedderke, J.W. & Bogetic, Z., 2009. "Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures," World Development, Elsevier, vol. 37(9), pages 1522-1539, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10241-:d:634960. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.