It is a statistical method that is related to the regression of principal components, instead of finding hyperplanes of maximum variance between the response variable and the independent variables, there is a linear regression by projecting prediction variables and observable variables to a new space. Because both the X and Y data are projected into new spaces, the family of PLS ??models is known as a bilinear model factor.
Published in Chapter:
Innovation, Value Creation, and Entrepreneurship by Opportunity: An Analysis of European Countries
María-Soledad Castaño-Martínez (University of Castilla-La Mancha, Spain)
Copyright: © 2020
|Pages: 21
DOI: 10.4018/978-1-7998-1169-5.ch003
Abstract
Technological progress is one of the main generators of increases in the production economy, involving the introduction of new products which, in turn, allows companies that carry out innovative actions to survive in the market. According to Schumpeter, innovation is an important source of value creation, improving growth in companies and economy. Thus, entrepreneurs introducing innovations in the market to take advantage of new business opportunities increase value creation, understood as the actions implemented to increase the value of goods and services created by enterprises. Likewise, the exploitation of these new opportunities that arises thanks to technological change are also largely conditioned by entrepreneurs' human capital, availability of financial resources, investment in research and development activities, expectations, and efficient business regulations.