Innovation capability of enterprises in Nghe An Province under the two-tier local government model: Current status and policy implications

This study analyzes the innovation capability of enterprises in Nghe An Province during 2020 - 2025 in the context of the transition to a two-tier local government model from July 2025. Using secondary data from socio-economic reports, the Provincial Innovation Index (PII), policy documents, and startup ecosystem reports, the study finds that Nghe An has established foundations for innovation through startup support, technology transfer, administrative reform, and digital government. However, its innovation capability remains limited, ranking 37th among 63 provinces and cities in the 2024 PII. Major constraints include small enterprise size, low R&D investment, weak technology absorption, fragmented university - enterprise linkages, and uneven support capacity. Policy recommendations focus on enterprise support, technology transfer, intermediary organizations, innovation finance, and innovation governance.