Effects of Innovation and Technological Development on Catching up in National Competitiveness: A Study from the Asia-Pacific Region

Our study aims to assess the impacts of innovation and technological development on the catch-up trend in national competitiveness in 29 economies in the Asia-Pacific region over the 2012–2023 period. The Generalized Method of Moments (GMM) estimation technique is used to address the shortcomings of the model, making new contributions to the topic. The study provides new insights by integrating the interactions among innovation, technology, institutional factors, and private sector incentives. The results indicate that innovation significantly narrows the competitiveness gap, especially when combined with institutional efficiency while technology patents and trade openness show mixed effects. This contributes to the literature by highlighting the role of policy coordination in promoting sustainable catch-up in emerging economies.