Innovation and Tourism Industry in the BRICS Economies an Empirical Analysis (2011-2022)

Abstract

This study aims to explore and measure the impact of innovation on the tourism sector specifically, tourism growth in the BRICS economies during the period 2011-2022. The Global Innovation Index (GII) was employed as a measure of innovation to assess its influence on GDP. In addition, a set of explanatory variables was included, such as GDP, GDP per capita, foreign direct investment (FDI), and the inflation rate, to analyze their relationship with tourism growth, the study relied on data from multiple sources, including: World Intellectual Property Organization (WIPO), the World Bank, and statistical organizations in the BRICS economies,

For data analysis, a dynamic panel data approach was applied using the single-step GMM estimator of the Blundell-Bond model (1998), in order to obtain consistent and efficient estimates of the relationships between variables. The results of the study indicate that innovation plays a positive and crucial role in improving tourism's contribution to GDP by enhancing efficiency and developing services. The analysis confirms that innovation is a pivotal driver of tourism development, significantly improving the sector's contribution to GDP through better efficiency and service quality. In parallel, GDP, per capita income, and FDI also positively influence tourism growth, while inflation has a negative effect. These findings support theoretical perspectives that emphasize the critical role of innovation and investment in improving competitiveness and ensuring sustainable development in the tourism sector