The integrity of the innovation process on the example of EU countries : a PLS-SEM approach

The purpose of the article is to assess the integrity of the elements of innovation processes and to measure their efficiency based on the Schumpeter trilogy concept. The research was conducted with regard to European Union (EU) countries. The paper applies the partial least squares structural equation modelling (PLS-SEM) method that allows the analysis of latent variables (LVs). On the basis of the PLS-SEM models for 2010 and 2020, it was concluded that innovation processes were proceeding in an integrated manner in EU countries. Not only did the modelling results indicate a positive and moderate effect of the invention inputs LV on the innovation efficiency LV, but also a positive and strong influence of innovation efficiency LV on the innovation diffusion LV in the analyzed countries in both researched years. The technological process integrity of the EU economies was lower in 2020, than in 2010. In order to improve the functioning of innovation activities it is necessary to increase technology inputs and the efficiency of their use in R&D activities. Intensification of the collaboration between scientific and research institutes and entrepreneurs is recommended. The PLS-SEM model made it possible to measure its elements and assess the integrity of technological change.