Financing Technology and Commercialization of Innovation: Comparison of Spatial Models in a Selected Countries

Technology financing refers to the process of sponsoring research and development (R&D) activities in order to technologic move towards commercialization. Economic performance and the level of research and development expenditure in different countries can be affected by other countries. The present study tries to identify the most suitable spatial model and compare supportive policies with the approach of the dynamic space panel model for the period (2005-2016) and for the selected European countries (OECD), Southeast Asia and the Central Asia. Based on the results of the Moran test and verification spatial models, spatial R&D self-correlation in trade and technology and two-way technology relations and uniform distribution for negative spatial self-dependence are confirmed. By confirmation of the model (SDM), the R&D supportive policies show internal and external implications. According to the results of the estimation of the internal and external impacts of SDM models, the positive and significant effects of financial incentives (indirect support) on R&D in OECD and South-East Asian countries are confirmed, but negative effects are seen in the Central Asian countries. Positive and significant internal and external impacts of exports of the industry with the highest technology on R&D in the countries of South East Asian countries are confirmed. Innovation index has a positive and significant effect on R&D in all three regions, but its importance coefficient is more in Southeast Asian countries.