DOES THE CORRELATION BETWEEN TECHNOLOGICAL INNOVATION AND NET OUTWARD INVESTMENT POSITION, REALLY EXIST?

Abstract

This study presents the relationship between technological innovation, as a pillar of competitiveness at a global level, and net outward investment position of a country. We analysed in a static manner two representative indicators, namely net outward investment per capita (NOI) and innovation (GCI_INOV), for 133 worldwide economies, in the year 2013. The results of the analyses performed, using the Linear, Logarithmic, Inverse, Quadratic and Cubic models, demonstrate that there is no significant correlation between NOI, as dependent variable, and GCI_INOV, as independent one. Thus, the highest coefficient of determination value was .139 (quadratic and cubic models), showing that only 13.9% of the variation in the net outward investment position is explained by innovation. So, the technological innovation does not faithfully reflect the stage of a country’s investment development path.