The Effect of R&D Intensity on Innovation Performance: A Country Level Evaluation

Globalization led to technological advances and increased information flow which has resulted in the knowledge to turn into be the main drivers of economic growth. Investments in technology and innovation are made to advance economic performance and living standards the innovation process of the countries can be guided by deliberate government policies rather than a spontaneous phenomenon in global economic environment. In this regards the countries willing to make progress in innovation are focusing on innovation investments.However whether this approach which is accurate in terms of firm behavior, is eligible for a country is questionable. In this study the reasons that cause innovation performance and R&D intensity ranks of some countries deviate and regarding their R&D intensity values, why some countries have better or worse innovation outputs than their inputs are discussed in this study. It's concluded that positive environmental factors have great impact on a country in transforming its innovation investments to innovation performance.