Given the recent a knowledge-centric view which suggests that knowledge is the primary operant resource for value creation. governments of emerging economies have begun to strategically develop innovative capabilities that can potentially bolster economic growth and create value for their citizens.  However, not enough research attention has been devoted to national innovation capability in the context of emerging economies. Hence This study examines the origins, and consequences of innovation capability of emerging economies

Our results indicate that trademarks and patent, the two measures used in this study to measure of national innovation capability, allow nations to occlude other nations form usurping their competitive advantage. The results also indicate that national factors are significantly and positively correlated with trademark applications, but not necessarily with patens. However, this associations differ across different country groups. The findings from this study provide help for policy makers with insights on factors that can  influence national innovative capability. For example the study highlights the importance of absorptive capacity on national innovative capability for three of the four groups of nations. Our findings also suggest that governments could benefit by paying close attention to the type of FDI inflow and outflows to enhance national innovative capability