In the literature, no one has yet examined the causality direction between the innovation components (funding as an input and productivity as an output of R&amp;D) and the inflation or uncertainty at national level. Unfortunately, this subject remains ambiguous especially at the country level more than in the firm level. The literature provides analysis about the effect of inflation as an uncertainty indicator on the investments. The innovation activity as a costly investment could be affected by the high rate of inflation in the economy. Few attempts studied the effects of the uncertainty induced by inflation on the decision to invest in R&amp;D more specifically. However, the innovation indicator effects, such as the funding availability and innovation productivity, on the inflation rate are also unclear and deserve to be discovered. Moreover, the causality between inflation and innovation is also unclear

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