National innovation systems and firms’ capital investment around the world: a N-tuple helix approach
| dc.contributor.author | Vetsikas, Apostolos | |
| dc.contributor.author | Pavlopoulos, Athanasios | |
| dc.contributor.author | Mertzanis, Charilaos | |
| dc.date.accessioned | 2026-07-13T07:43:02Z | |
| dc.date.available | 2026-07-13T07:43:02Z | |
| dc.date.issued | 2026 | |
| dc.description | Global patterns of firms’ fixed-capital investment mirror economic development stages, institutional quality, and technological capabilities (Sun et al., 2023). In developed economies, strong institutions, mature financial markets, and effective national innovation systems (hereafter, NISs) support investments in automation, AI, and green technologies that help firms stay competitive in fast-evolving markets (Lee et al., 2022). Large emerging economies are expanding investments in technology and clean energy, though regulatory constraints limit their full potential (Andreoni & Tregenna, 2020). In contrast, developing countries often prioritize basic infrastructure, manufacturing, and agriculture, with a gradual shift toward digital and renewable technologies. However, weak institutional support and financial systems hinder large-scale investments in advanced technologies. Since capital formation underpins productivity growth and structural change, investment outcomes depend not only on firm endowments but also on systemic conditions, such as financial intermediation, knowledge diffusion, skills formation, and credible rules, that shape perceived risk, expected returns, and the timing of irreversible outlays (Herrendorf et al., 2014; Lakitan, 2013). | |
| dc.description.abstract | We examine whether national innovation system (NIS) performance shapes firms’ fixed-capital investment decisions across 93 countries from 2008 to 2020. We use firm-level data from the World Bank’s Enterprise Surveys and reconstruct a helix-based composite indicator (SFIGA) to measure countries’ innovation performance globally. The index integrates the roles of government, industry, academia, society, and finance. To capture the broader context, we include firm-level and country-level controls that reflect organizational, financial, and institutional factors. Probit estimates with sector, year, and country fixed effects indicate a robust positive association between national innovation performance and the propensity to invest in fixed assets. Results remain stable under instrumental variable estimation, Oster test, and propensity score matching. Mechanism tests indicate transmission through technology adoption, ICT export activities, and workforce training. Additional heterogeneity analyses show that system maturity matters. The evidence supports an actor-centered view of NISs and suggests that strengthening helix performance can crowd in corporate capital formation. Keywords: Capital investment decisions, Enterprise surveys, Global, Institutions, N-tuple innovation helices, National Innovation Systems | |
| dc.identifier.citation | Vetsikas, A., Mertzanis, C., & Pavlopoulos, A. (2026). National innovation systems and firms’ capital investment around the world: a N-tuple helix approach. Small Business Economics, 66(4), 1969-1989. | |
| dc.identifier.doi | https://doi.org/10.1007/s11187-026-01195-7 | |
| dc.identifier.uri | https://repository.adu.ac.ae/handle/1/8383 | |
| dc.language.iso | en | |
| dc.publisher | Springer | |
| dc.title | National innovation systems and firms’ capital investment around the world: a N-tuple helix approach | |
| dc.type | Article |