Financial and investment indicators for accelerating innovation development: Comparison of GII leaders and Ukraine
-
Received September 13, 2023;Accepted December 5, 2023;Published December 22, 2023
-
Author(s)Link to ORCID Index: https://orcid.org/0000-0002-4159-8446Link to ORCID Index: https://orcid.org/0000-0003-1976-4775Link to ORCID Index: https://orcid.org/0000-0003-2540-862XLink to ORCID Index: https://orcid.org/0000-0002-3296-2074Link to ORCID Index: https://orcid.org/0000-0002-8584-0302
-
DOIhttp://dx.doi.org/10.21511/imfi.20(4).2023.35
-
Article InfoVolume 20 2023, Issue #4, pp. 452-466
- TO CITE АНОТАЦІЯ
-
Cited by3 articlesJournal title: JOURNAL OF INTERNATIONAL STUDIESArticle title: Impact of university-industry R&D collaboration on innovation transfer and startup performanceDOI: 10.14254/2071-8330.2024/17-3/9Volume: 17 / Issue: 3 / First page: 164 / Year: 2024Contributors: Aleksandra Kuzior, Anastasiia Samoilikova, Martin Valúch, Éva Bácsné BábaJournal title: Data and MetadataArticle title: Analysis of the use of blockchain technologies and smart contracts to automate management processes and ensure sustainabilityDOI: 10.56294/dm2024461Volume: 3 / Issue: / First page: 461 / Year: 2024Contributors: Valentyn Bannikov, Stanislav Petko, Oleksandr Semenov, Oleksandr Zhurba, Kateryna LohinovaJournal title: Salud, Ciencia y Tecnología - Serie de ConferenciasArticle title: Enhancing Business Competitiveness through Accounting DigitalizationDOI: 10.56294/sctconf2025693Volume: 4 / Issue: / First page: 693 / Year: 2025Contributors: Svitlana Stender, Olena Lagovska, Nataliia Roshko, Andrii Soloshchak, Olesia Lemishovska
- 236 Views
-
67 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The purpose of the paper is to determine the causal relationship between financial and investment indicators and the level of innovation development in GII leading countries and Ukraine. For a sample of 10 leaders in GII-2022 and Ukraine for 2011–2020, a correlation analysis was conducted based on the following indicators: the value of GII, foreign direct investment (net inflows), domestic credit to the private sector, ease of getting credit, protecting minority investors, and real interest rate. A positive relationship (with moderate/high strength) between innovation development and foreign direct investment has been proven in 7 out of 11 countries with a time lag of 0-2 years; domestic credit to the private sector – in 6 countries (lag of 0-3 years); and protecting minority investors – in 9 countries (lag of 0-2 years). For other indicators, the relationship is negative. Through VAR-modelling and Granger test, it is proven that the change in the value of foreign direct investment causes the change in the value of GII in 6 countries (bidirectional causality exists only in Ukraine); domestic credit to the private sector – in 6 countries, protecting minority investors and real interest rate – in 2 countries, and ease of getting credit – only in Switzerland. The results show that foreign direct investment and domestic credit to the private sector are the reasons for increasing the level of innovation development and have potentially the highest influence. In Ukraine, compared to GII leaders, only the factor of foreign direct investment is identified as a cause of innovation development.
- Keywords
-
JEL Classification (Paper profile tab)E61, F21, O32
-
References67
-
Tables5
-
Figures1
-
- Figure 1. Comparison of the overall GII score and scores of Credit and Investment sub-pillars of GII for 10 top countries in GII and Ukraine in 2022
-
- Table 1. Results of the Shapiro-Wilk test for normal data
- Table 2. Correlation analysis results confirming the existence of relationships between innovation development and certain financial indicators
- Table 3. VAR modelling on the example of the first country from the sample (Switzerland)
- Table 4. Granger test using the example of the first country in the sample (Switzerland)
- Table 5. General results of the Granger test to determine the causality relationships between certain indicators of a country’s financial policy and the level of its innovation development
-
- Artyukhov, A., Volk, I., Vasylieva, T., & Lyeonov, S. (2021). The role of the university in achieving SDGs 4 and 7: A Ukrainian case. Paper presented at the E3S Web of Conferences, 250.
- Baum, C. F., Hurn, S., & Otero, J. (2022). Testing for time-varying Granger causality. Stata Journal, 22, 355-378.
- Berezhnytska, U., Dobrovolska, O., Uniiat, L., Shevchenko, A., Horiashchenko, Y., & Halaz, L. (2022). Institutional principles of intensifying the innovative development of small and medium agribusiness. Journal of Agriculture and Crops, 8(4), 275-282.
- Box-Steffensmeier, J. M., Freeman, J. R., Hitt, M. P., & W. Pevehouse, J. C. (2014). Time Series Analysis for the Social Sciences. New York: Cambridge University Press.
- Boyarko, I. M., & Samusevych, Y. V. (2011). Role of intangible assets in company’s value creation. Actual Problems of Economics, 117(3), 86-94.
- Chen, Y., Xu, S., Lyulyov, O., & Pimonenko, T. (2023). China’s digital economy development: incentives and challenges. Technological and Economic Development of Economy, 29(2), 518-538.
- Didenko, I., Syhyda, L., & Markauskaitė, R. (2022). Promotion of Innovative Microchip in the Market of Medical Services: Marketing Aspects. Health Economics and Management Review, 3(2), 86-96.
- Dykha, M. V., Kuzinа, V., & Serdyukov, K. (2021). Grain pricing in Ukraine: A case study of malted barley. Innovative Marketing, 17(4), 26-36.
- Fakhrunnas, F., Astuti, R. D., & Hendrie Anto, M. B. (2022). Determinants of non-performing financing in Indonesian Islamic banks: A regional and sectoral analysis. Banks and Bank Systems, 17(4), 72-86.
- Gallo, P., Mihalcova, B., & Balogova, B (2023). Work Motivation of Social Workers in the Context of Management Innovations. Marketing and Management of Innovations, 1, 55-63.
- Granger, C. W. J. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica, 37, 424-438.
- Hryhorash, O., Bocharov, D., Korneyev, M., Rudyanova, T., & Hryhorash, T. (2022). The quality of higher education and its funding in countries with different levels of socioeconomic development. Knowledge and Performance Management, 6(1), 46-61.
- Hrytsenko, P., Voronenko, V., Kovalenko, Ye., Kurman, T., & Omelianenko, V. (2021). Assessment of the development of innovation activities in the regions: Case of Ukraine. Problems and Perspectives in Management, 19(4), 77-88.
- Huseynova, L., & Huseynov, A (2023). Management of International Trade in the Context of Ensuring Innovative Development. Marketing and Management of Innovations, 1, 87-98.
- Iastremska, O., Strokovych, H., & Gasimov, F (2023). Relationship of Investment in Innovation and Logistics Activity in the Conditions of the Experience Economy Development. Marketing and Management of Innovations, 1, 12-23.
- INSEAD & WIPO. (2012). The Global Innovation Index 2012. Stonger Innovation Linkages for Global Growth (464 p.). France, Fontainebleau.
- INSEAD. (2011). The Global Innovation Index 2011. Accelerating Growth and Development (381 p.). France, Fontainebleau.
- Islam, M. A., Liu, H., Khan, M. A., Reza, S. M., Yahia, Y. E., & Nasrin, L. (2018). Causal Relationship between Economic Growth, Financial Deepening, Foreign Direct Investment and Innovation: Evidence from China. Asian Economic and Financial Review, 8(8), 1086-1101.
- Kaya, H., Kwok, J. S., & LaTurner, J. (2023). Experiential Learning Through the Creation of an Investment Lab. Financial Markets, Institutions and Risks, 7(1), 16-25.
- Kolodiziev, O., Telnova, H., Krupka, I., Kulchytskyy, M., & Sochynska-Sybirtseva, I. (2021). Pension assets as an investment in economic growth: The case of post-socialist countries and Ukraine. Investment Management and Financial Innovations, 18(3), 166-174.
- Konieva, T. (2021). The impact of financing policy on the cost of debt. Investment Management and Financial Innovations, 18(4), 177-189.
- Kozmenko, S., & Vasyl’yeva, T. (2008). Specialized innovative investment banks in Ukraine. Banks and Bank Systems, 3(1), 48-56.
- Kuzior, A., & Zozul’ak, J. (2019). Adaptation of the idea of phronesis in contemporary approach to innovation. Management Systems in Production Engineering, 27(2), 84-87.
- Kuzior, A., Arefieva, O., Kovalchuk, A., Brożek, P., & Tytykalo, V. (2022). Strategic guidelines for the intellectualization of human capital in the context of innovative transformation. Sustainability (Switzerland), 14(19).
- Leonov, S. V., Vasylieva, T. A., & Tsyganyuk, D. L. (2012). Formalization of functional limitations in functioning of co-investment funds basing on comparative analysis of financial markets within FM CEEC. Actual Problems of Economics, 134(8), 75-85.
- Liu, K. (2023). Shanghai Stock Exchange’s Science and Technology Innovation Board: A Review. Financial Markets, Institutions and Risks, 7(1), 1-15.
- Lutkepohl, H. (2005). New Introduction to Multiple Time Series Analysis. New York: Springer.
- Melnyk, L., Kubatko, O., Matsenko, O., Balatskyi, Y., & Serdyukov, K. (2021). Transformation of the human capital reproduction in line with industries 4.0 and 5.0. Problems and Perspectives in Management, 19(2), 480-494.
- Melnyk, L., Matsenko, O., Kubatko, O., Korneyev, M., & Tulyakov, O. (2022). Additive economy and new horizons of innovative business development. Problems and Perspectives in Management, 20(2), 175-185.
- Moskalenko, B., Lyulyov, O., & Pimonenko, T. (2022). The investment attractiveness of countries: Coupling between core dimensions. Forum Scientiae Oeconomia, 10(2), 153-172.
- Mtar, K., & Belazreg, W. (2021). Causal Nexus Between Innovation, Financial Development, and Economic Growth: the Case of OECD Countries. Journal of the Knowledge Economy, 12, 310-341.
- Nahla, N. (2023). University-company collaboration: what are the obstacles in Algeria? SocioEconomic Challenges, 7(1), 59-64.
- Njegovanović, A. (2023). Financial Evolution and Interdisciplinary Research. Financial Markets, Institutions and Risks, 7(1), 71-95.
- Oloveze, A. O, Ugwu, P. A., Okonkwo, R. V. O., Okeke, V. C., Chukwuoyims, K., & Ahaiwe, E. O. (2022). Factors motivating end-users’ behavioural intention to recommend m-health innovation: multi-group analysis. Health Economics and Management Review, 3(3), 17-31.
- Onodugo, C., Onodugo, I., Ogbo, A., Okwo, H., & Ogbaekirigwe, C. (2021). Moderating role of social capital on the effect of financial behavior on financial inclusion. Problems and Perspectives in Management, 19(3), 502-512.
- Pakhnenko, O., & Kuan, Z. (2023). Ethics of Digital Innovation in Public Administration. Business Ethics and Leadership, 7(1), 113-121.
- Paz, B., & Fontaine, G. (2018). A Causal Mechanism of Policy Innovation. Revista de Estudios Sociales, 63, 2-19.
- Pearson, K. (1896). Mathematical contributions to the theory of evolution – III. Regression, heredity, and panmixia. Philosophical Transactions of the Royal Society of London, Series A, 187, 253-318.
- Pearson, K., & Filon, L. N. G. (1898). Mathematical contributions to the theory of evolution. IV. On the probable errors of frequency constants and on the influence of random selection on variation and correlation. Philosophical Transactions of the Royal Society of London, Series A, 191, 229-311.
- Pradhan, R. P., Arvin, M. B., & Bahmani, S. (2018). Are innovation and financial development causative factors in economic growth? Evidence from a panel granger causality test. Technological Forecasting and Social Change, 132, 130-142.
- Rajbhandari, A. (2016). Vector autoregression–simulation, estimation, and inference in Stata. The Stata Blog: Not Elsewhere Classified.
- Rossi, B., & Wang, Y. (2019). Vector autoregressive-based Granger causality test in the presence of instabilities. Stata Journal, 19, 883-899.
- Samoilikova, A., & Artyukhov, A. (2023). Analysis of the relationship between “business-science” coopetition and intellectual property receipts. SocioEconomic Challenges, 7(1), 149-157.
- Shapiro, S. S., & Francia, R. S. (1972). An approximate analysis of variance test for normality. Journal of the American Statistical Association, 67, 215-216.
- Shapiro, S. S., & Wilk, M. B. (1965). An analysis of variance test for normality (complete samples). Biometrika, 52, 591-611.
- Shkarupa, O., Vlasenko, D., Makedon, H., Bilan, S., & Serafimova, D. (2022). Economy of knowledge and transfer of innovations: Ukraine’s progress through the lens of European development trends. Knowledge and Performance Management, 6(1), 100-113.
- Skliar, I. D., & Samoilikova, A. V. (2014). Risk evaluation at enterprise innovation and investment activity financing. Actual Problems of Economics, 161(11), 173-178.
- Sotnyk, I. M. (2012). Trends and problems in management of production and consumption dematerialization. Actual Problems of Economics, 134(8), 62-67.
- Soumadi, M. M. (2023). Intellectual Property and Patent Rights Protection for Innovators in Jordan. Business Ethics and Leadership, 7(1), 12-24.
- Spearman, C. E. (1904). The proof and measurement of association between two things. American Journal of Psychology, 15, 72-101.
- Stata. (n.d.a). vargranger — Pairwise Granger causality tests after var or svar.
- Stata. (n.d.b). correlate — Correlations of variables.
- Stata. (n.d.c). swilk — Shapiro –Wilk and Shapiro –Francia tests for normality.
- Stata. (n.d.d). spearman — Spearman’s and Kendall’s correlations.
- Stata. (n.d.e). var — Vector autoregressive models.
- Strielkowski, W., Samoilikova, A., Smutka, L., Civín, L., & Lieonov, S. (2022). Dominant trends in intersectoral research on funding innovation in business companies: A bibliometric analysis approach. Journal of Innovation and Knowledge, 7(4)
- Vasilyeva, T. A., Leonov, S. V., & Lunyakov, O. V. (2013). Analysis of internal and external imbalances in the financial sector of Ukraine’s economy. Actual Problems of Economics, 150(12), 176-184.
- Vasylyeva, T. A., Leonov, S. V., & Lunyakov, O. V. (2014). Countercyclical capital buffer as a macroprudential tool for regulation of the financial sector. Actual Problems of Economics, 158(8), 278-283.
- Voznyak, H., Mulska, O., Kloba, T., & Kloba, L. (2021). Assessing and strengthening budgetary security of regions and their amalgamated hromada in an unstable economy: A case for Ukraine. Public and Municipal Finance, 10(1), 138-150.
- WIPO. (2022). Global Innovation Index 2022. What is the future of innovation driven growth? (15th ed.) (89 p.). WIPO, Geneva, Switzerland.
- WIPO. (n.d.) Global Innovation Index Reports.
- World Bank. (n.d.a). Doing Business Historical Data.
- World Bank. (n.d.b). Domestic credit to private sector (% of GDP).
- World Bank. (n.d.c). Foreign direct investment, net inflows (% of GDP).
- World Bank. (n.d.d). Real interest rate (%).
- Yu, Y. (2023). Performance Analysis of Public Investment in Chinese University Education Based on Regional Differences and Influencing Factors. Business Ethics and Leadership, 7(1), 37-49.
- Yu, Y., Xinxin, W., Ruoxi, L., & Tingting, Y. (2023). The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from China. SocioEconomic Challenges, 7(1), 129-138.
-
-
Conceptualization
Olena Dobrovolska, Ralph Sonntag
-
Data curation
Olena Dobrovolska, Olha Hubaryk, Tetіana Savanchuk
-
Investigation
Olena Dobrovolska, Tetіana Savanchuk
-
Methodology
Olena Dobrovolska, Svitlana Kachula
-
Supervision
Olena Dobrovolska, Olha Hubaryk
-
Validation
Olena Dobrovolska, Tetіana Savanchuk
-
Writing – original draft
Olena Dobrovolska, Olha Hubaryk, Tetіana Savanchuk
-
Writing – review & editing
Olena Dobrovolska, Ralph Sonntag, Svitlana Kachula, Olha Hubaryk, Tetіana Savanchuk
-
Formal Analysis
Ralph Sonntag, Olha Hubaryk
-
Project administration
Ralph Sonntag, Svitlana Kachula
-
Visualization
Svitlana Kachula, Olha Hubaryk, Tetіana Savanchuk
-
Conceptualization
-
The role of foreign direct investment and trade on carbon emissions in Turkey
Gizem Kaya , M. Özgür Kayalica , Merve Kumaş , Burc Ulengin doi: http://dx.doi.org/10.21511/ee.08(1).2017.01Environmental Economics Volume 8, 2017 Issue #1 pp. 8-17 Views: 2033 Downloads: 1000 TO CITE АНОТАЦІЯThis study aims to observe the long run and short run effects of gross domestic product, foreign direct investment inflows and trade on CO2 emissions and causality relationships between these factors, using annual data for the period of 1974-2010. The empirical results demonstrate that the inverted U-shaped relationship of environmental Kuznets curve is valid for Turkey. In addition, there are positive long run effects of foreign direct investment and trade openness on CO2 emissions. The authors also find a bidirectional causality relationship between CO2 emission and FDI.
-
Treatment strategies for bad loans to microfinancial institutions: evidence from Kendari, Indonesia
Investment Management and Financial Innovations Volume 16, 2019 Issue #1 pp. 144-153 Views: 1951 Downloads: 150 TO CITE АНОТАЦІЯThe purpose of the research is to find the right strategic formula to resolve bad loans suitable to environment and characteristics of micro-financial institutions and their consumers. It applies qualitative approach by means of interactive method put forward by Milles and Huberman (2009) as analysis method. Data are obtained from indepth interview with superordinates, staff and consumers of microfinance institutions in Kendari city. A microcredit institution “Harum” needs several strategis to handle bad loans. It includes: institutional reinforcement (improvement in service procedure, increase in human resources’ skill, more branch offices, more new recuitments, the involvement of sub-district government, the use of information system), reinforcement of consumers’ capacity (tight selection process, counseling of business management, advisory service, and special relationship). The research results serve as solutions to microfinancial institutions in handling bad loans, from which development and sustainability can be assured. Consumers might make use of this information to develop their business. They also might serve as references for regional government in making the right policy for the development of micofinancial institutions and small business empowerment. This is the first study exploring formulation of strategy for microfinancial institutions in handling bad loans. The research explores internal and external aspects of microfinancial institution, with holistic view of the right policy in terms of institutions and consumers.
-
Modeling of FinTech market development (on the example of Ukraine)
Alina Bukhtiarova , Arsen Hayriyan , Nikol Bort , Andrii Semenog doi: http://dx.doi.org/10.21511/im.14(4).2018.03FinTech startups and services are one of the most dynamic segments of the modern economy. New financial technologies have already attracted many investors and form millions of budgets. Changing the traditional financial services concept, FinTech companies formed a new niche within the financial services market, the dynamic development of which determines the relevance of the development and implementation of an effective regulatory and oversight system.
The purpose of the article is to develop an economic and mathematical model for forecasting the development of the FinTech market on the example of Ukraine. In order to study the development of the FinTech industry, a multiple regression model was presented. The model describes the dependence of the total investment value of FinTech from venture investments in financial technology, venture investments in other technologies and venture investments in online lending. Based on this model, the effect of attracting investments with new FinTech projects on the total volume of investments in the industry was clarified. According to the model, with a change in investments in FinTech by 1%, the total rate of venture investments decreases by 0.03, funds in new projects of other companies grow by 0.05, and venture investments in online lending increase by 0.89. According to the analysis of regulatory legislation in the foreign countries of the FinTech services sphere, it was found that the regulation of most of the risks associated with the development of FinTech services falls within the competence of different supervisory authorities, requiring cross-sectoral cooperation between public institutions.