Serbian Journal of Management (Jun 2023)

Structural PCA-MLR model of the innovation environment in BRICS countries

  • 1. INTRODUCTIONNowadays, every country in the worldorganize and plan its innovation activitiesthrough innovation systems that shapenational innovation environment. Innovationsystems across the world differ in actors,their communication and elementarySTRUCTURAL PCA-MLR MODEL OF THE INNOVATIONENVIRONMENT IN BRICS COUNTRIES Ivana Petkovski

DOI
https://doi.org/10.5937/sjm18-32136
Journal volume & issue
Vol. 18, no. 1
pp. 1 – 26

Abstract

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The process of globalization forces market changes in the form of intense competition.Economies can survive by getting competitive advantage in the global market through developinginnovation. The main target of this empirical research is to discover the most important innovationcomponents that constitute structure of the global innovation index (GII) and judge their influence inemerging BRICS economies. Innovation process is discussed on the grounds of GII ranking scoresaccumulated from 2011 to 2021. The research outcome of the Principal Component Analysis adoptednine components that represent seven dimensions. Extracted components are further used in theregression analysis to establish a multiple linear regression (MLR) equation for predicting the GIIscore used in the overall ranking. Derived regression solution introduced valuable MLR results withhigh coefficient of determination where 98.2% of the GII values are explained by the extractedcomponents. The dominant effects on GII are attained in innovation components that include generalinfrastructure and knowledge workers. Moreover, comparison analysis of the actual and computedGII scores illustrated 99.1% overlap between the two values. Evaluated results of the PCA-MLRanalysis serve to investigate the success in developing innovation performances in emergingeconomies by comparing innovation index accomplished by BRICS.

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