Innovations as a source of economic wellbeing and social prosperity has been well researched, albeit primarily done in the context of developed economies. However, of late, interest in the effect of innovation on economic performance and quality of life has been renewed as the world observes the rise of emerging economies, and at the same time, the prolonged recession in the more developed economies (i.e. North America and European countries). There has been a marked increase in the quantity and quality of research and development, spawn by innovative companies from emerging economies that are making their mark in global marketplace. These phenomena challenge the traditional concept that innovation flows from the resource rich developed countries to less developed countries, and that the latter are at a disadvantage in terms of knowledge, technology and competitiveness. Existing studies on national innovation highlight the relationships between innovative capability and its outcomes; however, few have tried to explain the determinants of a nation’s innovative capabilities. Using a sample of 95 countries and panel data analysis covering 28 years of observation, this study attempts to model the determinants of innovative capability at national level, and focuses on absorptive capacity and institutional framework as the main …

A firm can deploy a variety of arrangements (entry modes) like wholly owned subsidiaries, joint ventures, contracts, and export modes to implement its product market strategies in foreign countries. Each of these arrangements entails decisions about the location of production facilities and/or marketing operations, and the type of ownership of these operations. The choice of an entry mode is of strategic importance to a firm because it can involve investment of substantial amount of resources and has a strong bearing on the firm's marketing mix. Due to its strategic importance, the entry mode choice phenomenon has been extensively researched. In the past, seven major theories have been proposed but none is able to explain the choice from the complete set of entry modes. Thus, there exists a gap between the theory and practice of entry mode choice. This study provides breakthrough on two fronts. First, it develops a new theory of entry mode choice grounded in the resource-based perspective of the firm. The theory posits that the decision to locate its production and/or marketing operations in a country is related to the actualizability of the firm's competitive advantage in that country. However, the ownership decision is related to the sustainability …