Segmentation of Innovation determinants: Case of the Global Innovation Index

Abstract

Innovation plays a crucial role in determining today's economic growth patterns. In a fast globalized world and global competition, countries and enterprises that renew the range of their products and services take the lead. To manage innovation, it should be measured. The Global Innovation Index (GII), defined a set of innovation determinants (inputs) and outputs, collects annual datasets and proposes a global ranking for countries based on their capacity to innovate. The purpose of this paper is to study and verify the relevance of the determinants proposed by the GII in order to develop the best possible model to predict and explain national innovation outputs. To this end, we develop a mixed methodology, using unsupervised and supervised data analysis models, for the segmentation of the innovation determinants using the 2017 GII dataset. A new reduced determinant set is defined allowing a better specification of factors and/or policies to explain the variation of the innovation intensity between countries.