It is widely accepted that innovation is the driving force for economic growth. Therefore it is important for countries to examine their national innovative capacity to build and strength their related institutions and infrastructures. This study examines the national innovative capacity of selected 19 countries utilizing panel data for the period 1995 to 2013. The results show that patents are affected differently according to the countries’ Gross Domestic Product, total personnel in Research and Development, educational share spent on Gross Domestic Product, percentage of Research and Development funded by private industry and percentage of Research and Development funded by government. In addition patents are inclined to increase nations development level.
Keywords: National innovative capacity, Panel data, Patents