The Determinants of Innovation and Productivity of a Nation

This paper synthesizes five determinants of innovation and productivity of a nation. They are namely: (1) human resources and their characteristics, (2) natural and physical resources and their characteristics, (3) systems and strategies and their characteristics, (4) interactions and relationships among above three aspects, and (5) changes in the above four aspects. Though this paper separately identifies the determinants of innovation and productivity, using them for creating innovation and productivity into a process is complex and dynamic. Hence, for instance, this paper suggest primarily investigate how the characteristics of human resources in a nation determine its innovation and productivity; or how national reward management of a nation can affect innovation potential of the nation, in consideration of complexity of the relationship among the variables. Further, this study also proposes to explore how these five determinants influence each other and work together among them; and/or whether they work collaboratively or competitively. These studies can pave ways for determining the actual level of innovation and productivity of a nation. This paper, as a base, contributes to that extent