Revisiting the Factors Driving Firms’ Innovation Performances: the Case of Visegrad Countries

Abstract

This study examines the various factors that drive firms’ innovations in Visegrad countries. For the empirical analysis, we used data from the Eurostat Community Innovation Survey 2012–2014 and the probit regression model. The probit regression analysis finds that the main drivers of innovations in these countries are competing in foreign markets, engaging in innovation activities such as R&D and in-house training activities. We find that engaging in R&D was probable to improve product innovations by 48%, process and organizational innovations by 27% and market innovations by 22%. The study also finds that public subsidies for innovations from local, central and EU sources significantly influenced firm-level innovations. Lastly, innovations in these countries were also significantly and positively stimulated by certain firm characteristics such as size and ownerships. In this respect, policy makers and industry management should consider increasing their investments for research and development and its related activities inter alia to improve innovation performance.

This is a preview of subscription content, log in to check access.

References

  1. Anderson, H. J., & Odei, S. A. (2018). The influence of public support on university-industry-government collaboration: the case of the Czech Republic, Slovakia, Hungary and Romania. Statistika – Statistics and Economy Journal, 98(4), 352–361.

    Google Scholar 

  2. Arundel, A., Casali, L., & Hollanders, H. (2015). How European public sector agencies innovate: the use of bottom-up, policy-dependent and knowledge-scanning innovation methods. Research Policy, 44(7), 1271–1282.

    Google Scholar 

  3. Belderbos, R., Carree, M., Lokshin, B., & Sastre, J. F. (2015). Inter-temporal patterns of R&D collaboration and innovative performance. The Journal of Technology Transfer, 40(1), 123–137.

    Google Scholar 

  4. Beugelsdijk, S., Klasing, M. J., & Milionis, P. (2018). Regional economic development in Europe: the role of total factor productivity. Regional Studies, 52(4), 461–476.

    Google Scholar 

  5. Bratti, M., & Felice, G. (2012). Are exporters more likely to introduce product innovations? The World Economy, 35(11), 1559–1598.

    Google Scholar 

  6. Carayannis, E. G., & Campbell, D. F. (2009). ‘Mode 3’ and ‘Quadruple Helix’: toward a 21st century fractal innovation ecosystem. International Journal of Technology Management, 46(3–4), 201–234.

    Google Scholar 

  7. Carayannis, E. G., Rogers, E. M., Kurihara, K., & Allbritton, M. M. (1998). High-technology spin-offs from government R&D laboratories and research universities. Technovation, 18(1), 1–11.

    Google Scholar 

  8. Cheung, Y. L., Rau, P. R., & Stouraitis, A. (2010). Helping hand or grabbing hand? Central vs. local government shareholders in Chinese listed firms. Review of finance, 14(4), 669–694.

    Google Scholar 

  9. Chun, H., & Mun, S. B. (2012). Determinants of R&D cooperation in small and medium-sized enterprises. Small Business Economics, 39(2), 419–436.

    Google Scholar 

  10. Cohen, W. M., & Levinthal, D. A. (1989). Innovation and learning: the two faces of R&D. The Economic Journal, 99(397), 569–596.

    Google Scholar 

  11. Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.

    Google Scholar 

  12. Cohen, W. M., Nelson, R. R., & Walsh, J. P. (2002). Links and impacts: the influence of public research on industrial R&D. Management Science, 48(1), 1–23.

    Google Scholar 

  13. Cowling, M. (2016). You can lead a firm to R&D but can you make it innovate? UK evidence from SMEs. Small Business Economics, 46(4), 565–577.

    Google Scholar 

  14. Crespi, G., & Zuniga, P. (2012). Innovation and productivity: evidence from six Latin American countries. World Development, 40(2), 273–290.

    Google Scholar 

  15. Damijan, J. P., Kostevc, Č., & Polanec, S. (2010). From innovation to exporting or vice versa? The World Economy, 33(3), 374–398.

    Google Scholar 

  16. Du Plessis, M. (2007). The role of knowledge management in innovation. Journal of Knowledge Management, 11(4), 20–29.

    Google Scholar 

  17. Forés, B., & Camisón, C. (2016). Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size? Journal of Business Research, 69(2), 831–848.

    Google Scholar 

  18. Fu, X., Mohnen, P., & Zanello, G. (2018). Innovation and productivity in formal and informal firms in Ghana. Technological Forecasting and Social Change, 131, 315–325.

    Google Scholar 

  19. García-Quevedo, J., Segarra-Blasco, A., & Teruel, M. (2018). Financial constraints and the failure of innovation projects. Technological Forecasting and Social Change, 127, 127–140.

    Google Scholar 

  20. Gómez, J., Salazar, I., & Vargas, P. (2016). Sources of information as determinants of product and process innovation. PLoS One, 11(4), e0152743.

    Google Scholar 

  21. Henttonen, K., Kianto, A., & Ritala, P. (2016). Knowledge sharing and individual work performance: An empirical study of a public sector organisation. Journal of Knowledge Management, 20(4), 749–768.

    Google Scholar 

  22. Hervas-Oliver, J. L., Sempere-Ripoll, F., & Boronat-Moll, C. (2014). Process innovation strategy in SMEs, organizational innovation and performance: a misleading debate? Small Business Economics, 43(4), 873–886.

    Google Scholar 

  23. Hudec, O. (2015). Visegrad countries and regions: innovation performance and efficiency. Quality Innovation Prosperity, 19(2), 55–72.

    Google Scholar 

  24. Johanson, J., & Mattsson, L. G. (2015). Internationalisation in industrial systems—a network approach. In Knowledge, networks and power (pp. 111–132). London: Palgrave Macmillan.

    Google Scholar 

  25. Klímová, V., Žítek, V., & Králová, M. (2019). How public R&D support affects research activity of enterprises: evidence from the Czech Republic. Journal of the Knowledge Economy, 1–20.

  26. Kroll, H., & Kou, K. (2019). Innovation output and state ownership: empirical evidence from China’s listed firms. Industry and Innovation, 26(2), 176–198.

    Google Scholar 

  27. Lee, N. (2019). R&D accounting treatment, R&D state and tax avoidance: with a focus on biotech firms. Sustainability, 11(1), 44.

    Google Scholar 

  28. Lee, S., Park, G., Yoon, B., & Park, J. (2010). Open innovation in SMEs—an intermediated network model. Research Policy, 39(2), 290–300.

    Google Scholar 

  29. Liu, Y. (2019). Navigating the purchasing power gap in new product development in multinational corporations. R&D Management, 49(5), 819–834.

    Google Scholar 

  30. Maietta, O. W. (2015). Determinants of university–firm R&D collaboration and its impact on innovation: a perspective from a low-tech industry. Research Policy, 44(7), 1341–1359.

    Google Scholar 

  31. Norbäck, P. J., & Persson, L. (2012). Entrepreneurial innovations, competition and competition policy. European Economic Review, 56(3), 488–506.

    Google Scholar 

  32. Odei, S. A., & Stejskal, J. (2018). The influence of knowledge sources on firm-level innovation: the case of Slovak and Hungarian manufacturing firms. Central European Business Review, 7(2), 61–74.

    Google Scholar 

  33. Odei, S. A., & Stejskal, J. (2019). Do firms R&D collaborations with the science system and enterprise group partners stimulate their product and process innovations? Economies, 7(2), 43.

    Google Scholar 

  34. Onetti, A., Zucchella, A., Jones, M. V., & McDougall-Covin, P. P. (2012). Internationalization, innovation and entrepreneurship: business models for new technology-based firms. Journal of Management & Governance, 16(3), 337–368.

    Google Scholar 

  35. Pece, A. M., Simona, O. E. O., & Salisteanu, F. (2015). Innovation and economic growth: an empirical analysis for CEE countries. Procedia Economics and Finance, 26, 461–467.

    Google Scholar 

  36. Phillips, G. O. (2018). Innovation and technology transfer in Japan and Europe: industry-academic interactions. London: Routledge.

    Google Scholar 

  37. Pierre, A., & Fernandez, A. (2018). Going deeper into SMEs’ innovation capacity: an empirical exploration of innovation capacity factors. Journal of Innovation Economics & Management, 25(1), 139–181.

    Google Scholar 

  38. Pietrobelli, C., & Rabellotti, R. (2011). Global value chains meet innovation systems: are there learning opportunities for developing countries? World Development, 39(7), 1261–1269.

    Google Scholar 

  39. Pino, C., Felzensztein, C., Zwerg-Villegas, A. M., & Arias-Bolzmann, L. (2016). Non-technological innovations: market performance of exporting firms in South America. Journal of Business Research, 69(10), 4385–4393.

    Google Scholar 

  40. Prokop, V., Odei, S. A., & Stejskal, J. (2018). Propellants of university-industry-government synergy: comparative study of Czech and Slovak manufacturing industries. Ekonomický časopis, 66(10), 987–1001.

    Google Scholar 

  41. Salavou, H., Baltas, G., & Lioukas, S. (2004). Organisational innovation in SMEs: the importance of strategic orientation and competitive structure. European Journal of Marketing, 38(9/10), 1091–1112.

    Google Scholar 

  42. Sasidharan, S., & Kathuria, V. (2011). Foreign direct investment and R&D: substitutes or complements—a case of Indian manufacturing after 1991 reforms. World Development, 39(7), 1226–1239.

    Google Scholar 

  43. Shefer, D., & Frenkel, A. (2005). R&D, firm size and innovation : an empirical analysis. Technovation, 25, 25–32.

    Google Scholar 

  44. Stejskal, J., & Hajek, P. (2015). The influence of public expenditure on innovation activity in Czech manufacturing industry. In Proceedings of the 25th international business information management association conference—innovation vision (Vol. 2020, pp. 1820-1827).

  45. Tether, B. S. (1998). Small and large firms: sources of unequal innovations? Research Policy, 27(7), 725–745.

    Google Scholar 

  46. Tether, B. S. (2002). Who co-operates for innovation, and why: an empirical analysis. Research Policy, 31(6), 947–967.

    Google Scholar 

  47. Veugelers, R., Ferrando, A., Lekpek, S., & Weiss, C. T. (2019). Young SMEs as a Motor of Europe’s innovation machine. Intereconomics, 54(6), 369–377.

    Google Scholar 

  48. Vieites, A. G., & Calvo, J. L. (2011). A study on the factors that influence innovation activities of Spanish big firms. Technology and Investment, 2(1), 8–19.

    Google Scholar 

  49. West, J., & Bogers, M. (2014). Leveraging external sources of innovation: a review of research on open innovation. Journal of Product Innovation Management, 31(4), 814–831.

    Google Scholar 

  50. Zhou, K. Z., Gao, G. Y., & Zhao, H. (2017). State ownership and firm innovation in China: an integrated view of institutional and efficiency logics. Administrative Science Quarterly, 62(2), 375–404.

    Google Scholar 

Download references

Author information

Affiliations

Authors

Corresponding author

Correspondence to Jan Stejskal.

Additional information

Publisher’s Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Odei, S.A., Stejskal, J. & Prokop, V. Revisiting the Factors Driving Firms’ Innovation Performances: the Case of Visegrad Countries. J Knowl Econ (2020). https://doi.org/10.1007/s13132-020-00669-7

Download citation

Keywords

  • Innovation performance
  • Innovation activities
  • R&D
  • Public subsidies
  • Visegrad countries

JEL Code

  • L62
  • 030
  • 031