Import of Goods and Services as a Stimulus for a Better National Innovation Performance in EU Member States

A remarkable increase in the attention devoted to national innovative capacity (NIC) has been noticed over the last decades. There is a strong debate whether a country's national innovative capacity is solely determined by local factors or it is also influenced by global network position and international economic activities. Furthermore, despite its importance, there is a lack of studies which take the variables of non-technological innovations into account. This paper aims to fill the empirical research gap by focusing on import of goods and services as an input of NIC and engaging non-technological innovations as an output in NIC models. An investigation of 28 European Union member states in the period of 2007-2017 shows that the international transmission of knowledge through import spillovers has a positive effect on trademark applications, design applications and exports of high-tech products. The findings help to better understand the role of international trade in enhancing national innovative capacity.