Financial Stability and Innovation: The Role of Non-Performing Loans

The following article analyses the relationship between Non-Performing Loans and innovation systems at a global level. The analysed data were obtained from the World Bank and the Global Innovation Index for the period 2013-2022 for 149 countries. The analysis was conducted using clustering with the k-Means algorithm, optimized with the Silhouette coefficient and the Elbow method. Subsequently, econometric analysis was carried out using panel data with Random Ef-fects and Fixed Effects. The clustering results show that the optimal number of clusters is three. The econometric analysis highlights the positive relationship between Non-Performing Loans, the exports of cultural and creative services, and the Innovation Input Sub-Index. The results also show the negative relationship between Non-Performing Loans, the H-Index, and the exports and imports of ICT services.