Estimating a new panel MSK dataset for comparative analyses of national absorptive capacity systems, economic growth, and development in low and middle income economies
This provides a dataset for researchers studying innovation and development in LMICs, but it is incremental as it applies an existing method to fill data gaps.
The authors tackled the lack of complete panel data for low- and middle-income countries (LMICs) by creating a new dataset with 47 variables for 82 LMICs from 2005 to 2019 using a standard multiple imputation technique, enabling comparative analyses of national absorptive capacity systems.
Within the national innovation system literature, empirical analyses are severely lacking for developing economies. Particularly, the low- and middle-income countries (LMICs) eligible for the World Bank's International Development Association (IDA) support, are rarely part of any empirical discourse on growth, development, and innovation. One major issue hindering panel analyses in LMICs, and thus them being subject to any empirical discussion, is the lack of complete data availability. This work offers a new complete panel dataset with no missing values for LMICs eligible for IDA's support. I use a standard, widely respected multiple imputation technique (specifically, Predictive Mean Matching) developed by Rubin (1987). This technique respects the structure of multivariate continuous panel data at the country level. I employ this technique to create a large dataset consisting of many variables drawn from publicly available established sources. These variables, in turn, capture six crucial country-level capacities: technological capacity, financial capacity, human capital capacity, infrastructural capacity, public policy capacity, and social capacity. Such capacities are part and parcel of the National Absorptive Capacity Systems (NACS). The dataset (MSK dataset) thus produced contains data on 47 variables for 82 LMICs between 2005 and 2019. The dataset has passed a quality and reliability check and can thus be used for comparative analyses of national absorptive capacities and development, transition, and convergence analyses among LMICs.