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Innovation: Trending Up but needs thrust, especially from the Private Sector 277

Figure 44: Innovation Input to Innovation Output Performance, 2020

Output Score INDIA

Input Score

Source: GII 2020 Report

Which innovation inputs can best explain innovation outputs?

Box 7: Methodology of Estimating Elasticity of Innovation
Output Ranks to Innovation Input Ranks

We used a balanced panel of 117 countries, omitting 14 countries with missing data, for the years
1
2013-20. We first performed a Fixed Effects (FE) regression with Country and Time fixed effects.
The Null Hypothesis that coefficients for all years are jointly equal to zero, couldn’t be rejected.
Hence, time fixed effects were not needed. Thereafter, a Hausman test for Fixed Effects vs Random
Effects was run, leading to rejection of Random Effects model.

1 Benin, Brunei Darusallam, Cabo Verde, Ethiopia, Ghana, Iran, Lao, Mauritius, Morocco, Myanmar, Trinidad & Tobago,
Uzbekistan, Yemen and Zimbabwe