Abstract : Innovation is a key driver of economic growth. However, countries with similar research and development spending show very different patent outputs. This raises questions about what makes innovation efficient. This study examines whether government effectiveness affects the relationship between R nations with less robust institutions tend to experience swift patent expansion during periods of capacity building, whereas advanced economies characterized by strong governance increasingly prioritize quality over sheer volume. Dynamic models demonstrate considerable persistence in patenting behavior, as evidenced by a lagged dependent variable coefficient of 0.623, thereby validating path-dependent innovation processes. These observations imply that effective innovation policy requires aligning research investments with institutional capacities and the prevailing developmental context, rather than prioritizing either independently. This research provides empirical support for the influence of governance capacity on national innovation systems.
Sudarmaji Eka (Mon,) studied this question.