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<p>Economic complexity reflects a country’s ability to diversify and produce knowledge-intensive goods, making it a key element in understanding development processes. Rooted in innovation dynamics, this study investigates the extent to which the pillars of national innovation systems (NIS), namely <i>institutions</i>, <i>human capital</i>&#xa0;and <i>research</i>, <i>infrastructure</i>, <i>market sophistication</i>, and <i>business sophistication</i>, influence the level of economic complexity across countries. Using data from 112 countries in 2020, drawn from the Global Innovation Index (GII) and the Economic Complexity Index (ECI), multiple linear regression models were estimated to assess the direct and interaction effects of these pillars. The results reveal that infrastructure and business sophistication have a significant and positive influence on economic complexity, while the other pillars do not exhibit direct effects. Additionally, a marginally significant interaction between infrastructure and human capital and research suggests that the effect of infrastructure is more pronounced in contexts where human capital is less developed. These findings reinforce the conditional and interdependent nature of innovation inputs and emphasize the importance of complementary investments across NIS pillars. The study contributes to the literature by bridging innovation and complexity frameworks. It provides practical insights for policymakers aiming to foster structural transformation and sustainable development through innovation-driven strategies.</p>

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The relationship between the pillars of national innovation systems and economic complexity: An international empirical analysis

  • 期刊论文

  • 发表日期：

    2025年7月31日

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  • Breno Valente Fontes Araújo,
  • Ana Claudia Azevedo,
  • Marco Aurélio Marques Ferreira

摘要

Economic complexity reflects a country’s ability to diversify and produce knowledge-intensive goods, making it a key element in understanding development processes. Rooted in innovation dynamics, this study investigates the extent to which the pillars of national innovation systems (NIS), namely institutions, human capital and research, infrastructure, market sophistication, and business sophistication, influence the level of economic complexity across countries. Using data from 112 countries in 2020, drawn from the Global Innovation Index (GII) and the Economic Complexity Index (ECI), multiple linear regression models were estimated to assess the direct and interaction effects of these pillars. The results reveal that infrastructure and business sophistication have a significant and positive influence on economic complexity, while the other pillars do not exhibit direct effects. Additionally, a marginally significant interaction between infrastructure and human capital and research suggests that the effect of infrastructure is more pronounced in contexts where human capital is less developed. These findings reinforce the conditional and interdependent nature of innovation inputs and emphasize the importance of complementary investments across NIS pillars. The study contributes to the literature by bridging innovation and complexity frameworks. It provides practical insights for policymakers aiming to foster structural transformation and sustainable development through innovation-driven strategies.