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Fostering Czech firms' innovation performance through efficient cooperation

100%

Prokop V. , Kotkova Striteska M. , Stejskal J.

Oeconomia Copernicana

2021

tom 12

nr 3

671-700

Research background: The business climate development and the stage of innovation systems' transformation are very similar in many Central and Eastern European countries, making it necessary to study these specific economies. These economies are at a different level of transformation, and their governments are trying to support the development of a knowledge-based economy, the creation of innovation systems, and collaboration among different types of entities. These governments need feedback in the form of research into the impacts of public funding on innovation activities through the influence of basic research and cooperation-based resources in individual countries. Purpose of the article: This paper focuses on the examination of (i) the influence of national and European subsidies on innovation performance in manufacturing firms in the Czech Republic and (ii) impacts of knowledge- and cooperation-based resources on innovation activities in Czech manufacturing. Methods: The latest available data from the Community Innovation Survey was used for analyses realized by different regression models. The proposed research models were gradually created to verify the influence of pro-innovation factors (expenditures on in-house and external R&D and on the acquisition of external tangible and intangible sources, cooperation with different partners and innovation) and public (national and/or European) funding of firms' innovation performance within the Czech manufacturing industry. Findings and value added: The results have showed that there is a need to focus on direct and indirect effects of selected innovation determinants; we have also identified the crucial role of cooperation (specifically with government, public, or private research institutes) as a mediating variable within innovation processes. The results have also evidenced that public funding affects the efficiency of knowledge- and cooperation-based resources and amplifies the impact on firms' innovation performance differently. Whereas subsidies from national budgets do not significantly influence the innovation performance of Czech manufacturing firms, European subsidies, on the other hand, significantly increase firms' innovation performance. A long-term contribution of this paper is the significant completion of the theory of policy implications that may be applicable in a broad international context beyond the borders of the Czech Republic. This study significantly contributes to the ongoing discussion about (i) the significance of public financial subsidies from both national and European funds and (ii) the effects of cooperation and R&D on firms? innovation performance within "catching-up" in Central and Eastern Europe.

Business model innovation elements and product innovation radicalness: Central European lessons for innovation leaders and followers

88%

Prokop V. , Zapletal D. , Stejskal J. , Giglio C. , Appolloni A.

Oeconomia Copernicana

2024

tom 15

nr 2

471-506

Research background: Despite the increased interest in business model innovation (BMI) in the last 20 years, the current research landscape still lacks empirical efforts aimed at investigating the underexplored link between BMI and innovation performance. This is doubly true in specific contexts like Central European countries, whereas innovation systems are weaker than in Western ones, and firms strongly depend on internal R&D activities and absorptive capacity and technology upgrades via cooperation with other countries. Purpose of the article: This study draws on the BMI theory with the aim of analyzing the effects of each individual BMI element on firms’ performance in terms of creation of radical innovations vs incremental ones. Methods: The data used are from the Community Innovation Survey (CIS) 2018 - the latest micro data available to date - focusing on 16,364 firms in Central Europe, namely 5,749 Czech, 7,377 Hungarian, and 3,238 Slovakian firms. As the explained (dependent) variables are dichotomous (binary: 1 indicates the answer is yes, 0 indicates the answer is no) for all estimated models, a binary logistic regression is used in order to focus on the individual elements representing BMI and analyse their separated effects on firms’ creation of radical and incremental innovations in Central Europe. Individual BMI elements are: BMI methods, logistics, communication, accounting, external relations, human resource management, and marketing. Moreover, we check for control variables such as tax credits and allowances of R&D, public funding of innovation, cooperation with other organizations on R&D or other activities, in-house R&D activities and contracted out ones, lack of finance, lack of skilled employees and internal financial resources, and size. Findings & value added: For radical innovators, practices for organising procedures and external relations are important. For incremental innovators, methods of organising work responsibility, decision making, and human resource management are significant. Surprisingly, regardless of the innovation radicality, several BMI elements are significant. This study suggests that managers should enhance strategic collaborations with external partners out of Central Europe, exploit their absorptive capacity, and increase the knowledge and experience of their employees, whilst policymakers should keep on providing tax credits and allowances for innovation activities, maintaining a supportive infrastructure and reducing administrative burdens.