How Do Structural Factors of Innovativeness Affect the Value of the Brands?

Abstract

This study investigates how macro-level structural factors of innovativeness influence the value of global brands. While prior research has focused predominantly on individual and organizational determinants of innovation, the role of country-level institutions, infrastructure, and human capital remains underexplored. Using data from the Global Innovation Index (GII) and a Bayesian Causal Mapping (BCM) methodology informed by artificial intelligence (AI)-based expert judgment, the authors develop a probabilistic model to examine the causal relationships between structural innovation factors and brand value across 132 countries over a ten-year period. The analysis distinguishes between innovation-driven and factor-driven economies, highlighting critical variables that affect brand performance. Results indicate that business sophistication, creative outputs, and knowledge and technology outputs are the most influential drivers of brand value. Additionally, infrastructure and human capital emerge as key levers for enhancing business sophistication, particularly in underdeveloped economies. The findings provide actionable insights for policymakers and managers seeking to enhance national branding strategies through innovation-driven development.