According to my model, not. At least not in affluent economies.

If for Schumpeter innovation is the foundation of corporate growth. A contractor who does not innovate is known to disappear on the market. Entrepreneurial strategy according to Michael Porter shows that the entrepreneur needs to know several other parameter to strengthen its ability creative and innovative. All this analysis is encapsulated in a symbol called PESTLE analysis (Political, Economic, Social, Technological, Legal, Ecological) shows are other elements to consider and micro parameters that the company must maintenier. It is by acting on the combination of these two parameters that undertaken by the bais of innovation could achieve positive results in terms marco economic.

If you have innovation capability, you probably have other aspects of social, economics and developmental domains. In my opinion innov. capability is one of the final outcomes of other capabilities.

Innovation leads to changes in production and supply. However, changes in macroeconomic equilibrium depends upon demand too. In affluent, mature economies, even innovation need to be "sold", so that making it profitable might be difficult. Also, with some differences, the most popular models suppose that consumers bears a permanent preference for more consumption, in value, so that revenue effect is always positive. As I pointed in my doctoral work (2012), this is a shortcut which should be questioned. And if satiability (not necessairily satiety) is supposed, over non-fix capital investment appears, tied with relative stagnation of real wages (hence GDP too) and a financial bubble.

Dear Ufuk,

I could not agree more with you. Thanks a lot for your short and very insightful answer.

It makes perfect sense to consider innovation capability as a final outcome, or an emergent property of a wider system whose components work in concert to achieve that outcome. Of course what remains to be determined is how the other system components collaborate or exchange value, and what are their underlying rules.

Dear Mohamed,

Without other systems, how come can we say that we have innovation capability? Look at the countries with innov. capability. they are the same countries with high human development level. See below paper:

Türen, U., Gökmen, Y. and Dilek, H., 2013. Exploring the Impact of Foreign Direct Investment Accumulation on National Innovation Capability and the Mediating Role of Human Development Level, International Journal of Social Inquiry (ISSN: 1307-8364), 6(1):49-72.

https://www.researchgate.net/publication/258687011_Exploring_the_Impact_of_Foreign_Direct_Investment_Accumulation_on_National_Innovation_Capability_and_the_Mediating_Role_of_Human_Development_Level?ev=prf_pub

Article Exploring the Impact of Foreign Direct Investment Accumulati...

Dear Ufuk,

I will reazd the paper first and then discuss. Many thanks again

For the macroeconomic approach, it would be necessary to have data on emerging innovations, innovative startups, etc. against the background of all business entities and institutions operating in the national economy.

Best wishes

the capacity for innovation is enhanced as the resource increases. with these conditions the resource is limited and must take other directions.