Sector innovation capacity determinants: modelling and empirical evidence from Spain

Studies about the variables that determine the ability to innovate at sectoral level are scarce and present a series of limitations. This paper tries to bridge this gap by building a model of sector innovation capacity based upon existing approaches related to the study of sectoral innovation (lifecycles of industries, evolutionary theory and the sectoral innovation systems approach) and a model of determinants for national innovation capacity. The empirical analysis is based upon data from the Survey on Innovation of Firms for Spain and the methods used comprise the application of panel data, factor analysis and ordinary least squares regression analysis. The main findings of the paper are the confirmation of the relevance of all the variables in determining sector innovation capacity, the formulation of the sector innovation capacity determinants model, the consistency of the proposed model confirming both the validity and appropriateness of the variables identified and, therefore, the value of using the variety of approaches selected.