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Determinants of Innovation Activities: Public Financing and Cooperation: Case Study of Czech Republic and Hungary

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Modeling Innovation Sustainability and Technologies

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

Abstract

Innovation represents one of the key factors in achieving competitive advantage of companies, hence the whole economies. Therefore, managers aim to acquire knowledge. Likewise public policy makers understand an importance of creating innovations and thus promote the generation and spread of positive effects through knowledge diffusion. In the context of modern innovation, the science-industry collaboration comes into its importance. Many foreign studies pointing to the fact, that this cooperation cannot be successful in each sector and that not every kind of innovation depends on the same knowledge flows. Therefore, we can notice inefficient attempts to cooperate in a number of cases, which are frequently accompanied by excessive use of national and European funds. The article aims to compare situation of companies in manufacturing industry in the Czech Republic and Hungary to analyze how is their growth of total turnover affected by (i) implementation of innovation (product and process); (ii) university-industry and government-industry collaboration; (iii) provision of public subsidies (national and European). We show, by using the multiple linear regression models, that cooperation with universities and with other enterprises within enterprise groups positively influences innovation activities. The results also show that public funds are more effectively provided in Hungary, more specifically the European funds. We provide comparison between Czech and Hungarian manufacturing industries and proposals how to improve the efficiency of national funds provision, which is not sufficient in these countries.

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Acknowledgments

This article was created as part of the resolution of the research task No. 17-11795S financially supported by the Grant Agency of the Czech Republic.

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Authors and Affiliations

  1. Faculty of Economics and Administration, Institute of Economic Sciences, University of Pardubice, Studentska 95, Pardubice, 53210, Czech Republic

    Viktor Prokop & Jan Stejskal

Authors
  1. Viktor Prokop
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  2. Jan Stejskal
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Corresponding author

Correspondence to Viktor Prokop .

Editor information

Editors and Affiliations

  1. Business and Economics, New Atlantic University, Porto Salvo, Portugal

    Albertina Dias

  2. DG Communications Networks, Contents and Technology, European Commission, Brussels, Belgium

    Bror Salmelin

  3. Faculdade de Ciências e Tecnologia, Universidade Nova de Lisboa, Lisboa, Portugal

    David Pereira

  4. ISCTE-Instituto, Universitario de Lisboa, Lisboa, Portugal

    Miguel Sales Dias

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Prokop, V., Stejskal, J. (2018). Determinants of Innovation Activities: Public Financing and Cooperation: Case Study of Czech Republic and Hungary. In: Dias, A., Salmelin, B., Pereira, D., Dias, M. (eds) Modeling Innovation Sustainability and Technologies. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-67101-7_7

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