Dynamics of Innovation and Governance of Economic Growth

Innovation ability plays an important role in economic growth not only in under-developed countries, but also in developed countries, especially when markets are in recession. in this paper, we analyzed changes in major developments in the context of innovation capacity and the causality relation between innovation and its sources through an empirical study based on the automotive subcontractor network, which has experienced a number of architectural innovations. we showed that most of innovation sources (information sharing, organizational size, investment in r&d, and knowledge volume) are the accelerators or effects rather than the stimulators or causes of innovation.