Public Sector Inputs to the Innovativeness of the Country

Abstract

The globalization of competition has produced new issues for the public sector in the field of supporting a country’s innovativeness. This chapter’s objective is to analyze the structure and role of public sector inputs to the country’s innovativeness. In order to achieve the objective, the following research tasks have been set: analyze the literature on the structure and role of public sector inputs to innovativeness; provide methodology for empirical modeling of structure and impact of socio-economic factors on development processes; empirical analysis of the structure of public sector inputs to innovativeness and their impact on business sector innovation processes in EU member states, Croatia, Turkey, Iceland, and Norway. The data source used for the empirical analysis is the Eurostat database, and also some data originating from the European Innovation Scoreboard database. In the empirical part of the article a component analysis is conducted to find the structure of public sector inputs to innovativeness. Thereafter, in order to analyze the formation of business innovation development indicators, the influence of factors is assessed by multiple regression models explaining the public sector role in the formation of business sector innovation processes.