Innovative Collaboration among Developing Countries: the Role of National Innovation Systems in Latin America

PurposeBuilding on current debates on innovation, knowledge diffusion, and institutional dynamics, we explore the influence of national innovation systems (NISs) on international innovation collaborations in Latin America, focusing on intellectual property rights (IPR), access to scientific knowledge and regulatory quality.Design/methodology/approachWe analyze data from 17 Latin American countries from 2002-2015 using time-series panel analysis to evaluate how different NIS elements affect regional cooperation for innovation.FindingsRegulatory quality can improve international collaboration by compensating for weaker IPR and scientific knowledge bases. Interestingly, while both IPR and scientific knowledge inherently promote cooperation, stronger regulatory environments may diminish the effectiveness of IPR protections, suggesting a potential substitution effect.Practical implicationsThe study offers actionable insights for policymakers in developing regions to help them craft more effective policies for collaboration in innovation that consider the balancing act between regulatory quality and other NIS elements.Originality/valueThis research shifts focus from the conventional analysis of how developing countries attract collaboration from developed nations to how they can foster innovation among themselves, providing a unique perspective on the interaction between institutional factors and innovation capabilities within the Latin American context.