Innovation and economic growth system: an analysis of dynamic panel for the period 2006-2016

There is no consensus on the definition and measurement of economic development, since it is a topic that encompasses issues related to economic, social, cultural and political changes. Considering growth and economic development as similar concepts, this study, through factor analysis, extracted six factors. Based on the factors, six rankings indicating the performance of capacities were developed, with Singapore as a hegemonic nation among its peers. Still, based on the dynamic panel data model, it was found that, for the period from 2006 to 2016, the innovation system was the main factor for the economic progress of developing countries.