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All Journal Journal of Management and Entrepreneurship Research
Dunel Rajkumar
Shanghai University, China
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

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Digital Bridges or Digital Divides? The Impact of Innovation Capabilities on Digitally Deliverable Service Export Dunel Rajkumar; Shuquan He
Journal of Management and Entrepreneurship Research Vol. 7 No. 3 (2026)
Publisher : Universitas Islam Nahdlatul Ulama Jepara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.34001/jmer.2026.9.07.3-114

Abstract

Objective: This study examines how innovation capabilities influence Information and Communication Technology (ICT) service exports in China and India, focusing on whether innovation translates into export competitiveness through similar or country-specific pathways. Research Design & Methods: Using annual data from 2000 to 2024, the study employs an Autoregressive Distributed Lag Error Correction Model (ARDL-ECM) to examine both long-run relationships and short-run adjustments. ICT service exports are modelled as a function of resident patent applications, with real exchange rates, digital infrastructure, and human capital included as control variables. Findings: The results demonstrate distinct export-development trajectories. In China, ICT service exports are primarily associated with the long-term development of digital infrastructure and human capital, while resident patent applications exhibit a limited direct effect. In India, by contrast, innovation capability and exchange rate competitiveness emerge as significant long-run determinants of ICT service exports. Implications & Recommendations: The findings suggest that strengthening innovation alone may not automatically enhance digital service exports. Policymakers should align innovation policies with complementary investments in digital infrastructure, human capital, and macroeconomic competitiveness according to country-specific development conditions. Contribution & Value Added: This study contributes comparative evidence on the heterogeneous relationship between innovation capability and ICT service exports in two major emerging economies, demonstrating that the conversion of innovation capacity into international digital trade competitiveness is context-dependent.
Co-Authors Shuquan He