Innovation capabilities and innovation systems: A forgotten effects analysis of their components

Abstract

An innovation system can be considered an entity in charge of coordinating all the actors involved in the innovation processes of a country or region. Recently, the Mexican innovation system has adopted a model to assess the behavior and measurement of the resources invested in innovation activities. The innovation model comprises seven areas denominated as innovation pillars. Applying the forgotten effects theory, this paper aims to quantify the effects of the results of the innovation pillars on the innovation capabilities of a region. The results show a general direct effect of all the pillars on innovation capabilities; however, the pillars’ institutions, infrastructure and market sophistication present significant multiplicative indirect effects that suggest that the initial effects should be reviewed.