The impact of innovation on economic vulnerability:

EVit = β0 + β1Innovit + β2GROWit + β3OPENit + β4UNEMit + β5INFit + β6POPit + δt

+ γi + εit
Dependent variable: Economic vulnerability (EV) is proxied by EVI.
Independent variable: Innovation (Innov) is proxied by GII.
Control variables: GROW, OPEN, UNEM, INF, and POP, representing economic
growth, trade openness, unemployment, inflation, and population density
respectively.
i and t denote for country i at year t; β is coefficient; ε is residual term; and δt and
γi refer to fixed and time effects.
Variables Definitions Measurement Source
EV Economic Economic FERDI
vulnerability vulnerability
index
Innov Innovation Global innovation WIPO
index
GROW Economic growth Real GDP growth WDIs
rate (%)
OPEN Trade openness Trade (% GDP) WDIs
UNEM Unemployment Unemployment WDIs
ratio (% - ILO
estimates)
INF Inflation GDP deflator (%) WDIs
POP Population density Number of people WDIs
per kilometer of
land area