Abstract:

Innovation policy is a significant element of sustainable development by finding new solutions in response to existing problems. A key to a successful increase in innovation is to identify and understand what are the main business environment factors that impact on business innovation. So, the objective of this research work is to identify and quantify which business environment elements impact on business innovation activity, in the last ten years. Such goal will be reached using fixed and random panel data methods applied to data provided by the Global Entrepreneurship Monitor (GEM). This study concludes that worldwide factors as financing, government support, lower taxes and bureaucracy, entrepreneurship education in primary and secondary levels and the country’s economy openness present an important positive impact on innovation.