Dependence of the growth rate of GDP per capita on the growth rate of the Global Innovation Index and its subindices

Abstract

This research investigates the relationship between Global Innovation Index (GII) expansion and its component index elements as predictors of GDP per capita development. The statistical analy-sis through correlation and regression models showed GDP per capita growth establishes a moder-ate positive relationship with GII growth while business sophistication subindex applies the strongest force. Economic factors apart from innovation drive GDP growth according to the data from the regression analysis. To achieve economic progress through innovation-driven develop-ment it is vital to direct investments towards research-based R&D efforts while establishing stable institutions and developing financial frameworks.