The road to national competitiveness is paved with innovation and entrepreneurship: a qualitative comparative analysis

In the twenty-first century, competitiveness has become a pillar of sustainable development strategies around the world. Numerous international organizations and academics cite innovation and entrepreneurship as determinants of competitiveness. By incorporating innovation and entrepreneurship into the economy and society, countries have been able to implement policies to boost national competitiveness. However, not all countries have been equally successful because each country has its own unique characteristics that apply only within its national borders. An innovation system refers to the innovation institutions, actors, and infrastructures that shape innovation activities within national or regional boundaries. This article identifies the configurations of conditions that lead to high and low levels of national competitiveness. This paper presents the results of fuzzy-set qualitative comparative analysis (fsQCA) with six causal conditions. The results reveal six combinations of factors that increase national competitiveness. R&D, innovation, entrepreneurship support policies, and GDP per capita are crucial elements. In contrast, developed entrepreneurship does not guarantee competitiveness achievement if a country possesses poor R&D and institutional infrastructures. The implications of this study can help resource allocation by supporting the design and implementation of effective innovation and entrepreneurship policies.