National innovation systems and dynamic impact of institutional structures on national innovation capability: A configurational approach with the OKID method

Understanding the national innovation capability involves the consideration of a variety of evolving institutional structures within the national innovation system (NIS). The variety of and interactions among institutional structures requires a systemic and dynamic approach to the NIS. In this respect, a configurational approach generates specific configurational conditions of the institutional structures, and offers a comprehensive and integrated approach to deal with the inherently complex and evolving nature of the NIS. In this research, using the Global Innovation Index (GII) data, we employ a fuzzy model with the Observer Kalman filter identification (OKID) method to develop configurational combinations. Our analysis provides a characterization of the impact of specific institutional structures on national innovation capability, while accounting for time and the innovation level of the countries. By explaining which specific institutional structures impact national innovation capability, this study contributes to the design of the innovation systems with a systemic approach and our understanding of which institutional structures to support innovation. •Characterizing national innovation capability needs a dynamic approach to the interactions among institutional structures.•A configurational approach captures evolving institutional structures that govern the National Innovation System.•Observer/Kalman filter identification (OKID) method creates configurational combinations albeit limited historical data.•Our analysis finds the leading and complementary institutional structures born from systemic interactions.•Our results show changes in the ranking of the most critical institutional structures with respect to time.