Innovation ecosystems as a driver of countries' competitiveness in the global technological environment

Abstract

Purpose. This study is designed to investigate the impact of national innovation ecosystems on the competitiveness of the countries in the global technological landscape, taking into account the combined influence of technological capabilities, technological development, R&D capacity, human capital, foreign direct investment, institutional quality and trade openness. The study aims to isolate the main factors driving national competitiveness and analyze if digital environment helps reinforce the role of innovation ecosystems in competitiveness.

Methods. The study uses a quantitative econometric analysis method, using panel data for Germany, Poland and Ukraine in the period 2015-2025. Pooled OLS, Random Effects, Fixed Effects, a dynamic System GMM and an interaction model were used to estimate all the relationships between the Country Competitiveness Index, the Innovation Ecosystem Index, technological capabilities, digital environment, R&D expenditure, human capital, FDI, institutional quality and trade openness. The moderating effect of digitalization was explored by adding country- and year-specific fixed effects to the principal Fixed Effects model and by using interaction analysis. The dynamic specification also included the effects of national competitiveness persistence.

Results. The empirical results show that the innovation ecosystem development has a positive and statistically significant relationship with national competitiveness. In the Fixed Effects model the coefficient of the Innovation Ecosystem Index equals 0.421 and the coefficient is statistically significant at 1% level, which means that competitiveness is linked to stronger innovation ecosystems. Positive relations with competitiveness also exist for R&D expenses, technological capabilities, digital development, human capital, institutional quality, FDI and openness of trade. The interaction analysis yields a positive IEI × DIG coefficient of 0.0068, meaning that the digital environment's innovation level has a positive effect on the relationship between innovation ecosystem development and competitiveness. The dynamic GMM specification allows to confirm the persistence of competitiveness, as the lagged competitiveness coefficient is 0.624 with a positive value that is statistically significant; the IEI coefficient is still positive and statistically significant. It is clear from the comparative analysis that there are significant differences between the countries studied in the degree of development of their innovation ecosystems and their competitiveness, with Germany being the most competitive and advanced country in terms of innovation ecosystem development, Poland the most dynamic in terms of the development of an innovation ecosystem, and Ukraine the least competitive with regard to the performance of the innovation ecosystem but with a relatively well developed digital innovation ecosystem.

Conclusions. The study thus reinforces the relevance of innovation ecosystems as a multi-faceted factor of national competitiveness in the international technological landscape. Results indicate that, besides the development of innovation ecosystems, technological capabilities, R&D investments, human capital, digital infrastructure and institutional quality are also considered to build competitiveness. The positive relation between IEI and digital development suggests that digitalization has the potential to support the competitiveness impact of better IEIs. The findings are applicable for policymakers when creating an integrated innovation and digital transformation strategy and for research institutions and companies in order to further develop their technological competencies and innovation cooperation. Future studies should broaden the geographical and temporal scope of the data sample and use formal mediation modelling to further study the mediating role of innovation ecosystems, technological capabilities, digitalization and national competitiveness.