Countries' Competitiveness on Innovation and Technology

Innovation and technology are main sources of competitiveness. This study addresses two research questions. First, which economies are competitive in terms of innovation and technology? Second, what are the variables that determine competitiveness in innovation and technology? Analysis of Factorial of Correspondences (AFC), through the analysis of principal components methodology, is employed in this article. The analysis is divided into five phases as follows: a) reliability testing, b) the calculation of a matrix that expresses the joint variability of the variables, c) extraction of the optimal number of factors, d) the rotation of solutions for the ease of interpretation, e) estimation of the scores graphically, and f) determination of the competitiveness index.