The Role and Relationship of Innovation and the Business Environment in Promoting Global Competitiveness

The current era is called the age of globalization, an era in which the competition of enterprises has surpassed the regional and national levels and is taking place at the global level. In the current competitive environment, countries in the world are seeking to improve their competitiveness, and one of the key questions in promoting competitiveness is the role of innovation and the business environment in enhancing competitiveness. In this research, to answer the above question, the countries of the world, based on the Global Competitiveness Report- between 2013 and 2018 and using clustering technique were split into four different levels of competitiveness, then using the PLS , the role of the relationship between innovation and the business environment in enhancing global competitiveness was analyzed at four levels of competitiveness. Based on the results of the research, the role of innovation in promoting competitiveness was not proven in countries with low level of competitiveness, but it was proved in three levels of competitiveness. According to other findings of this study, the relationship between business environment and innovation at all levels of competitiveness was significant and positive and the role of the business environment in enhancing competitiveness in all four levels of competitiveness was proven.