nep-ino New Economics Papers
on Innovation
Issue of 2015‒01‒31
twenty-one papers chosen by
Steffen Lippert
University of Auckland

  1. The impact of brand use on innovation performance: Empirical results for Germany By Crass, Dirk
  2. The Roles of Research at Universities and Public Labs in Innovation Systems: a Perspective from the Italian Food and Drink industry By Maietta, Ornella Wanda
  3. An Innovation Policy Framework: Bridging the gap between industrial dynamics and growth By Braunerhjelm, Pontus ; Henrekson, Magnus
  4. Search Balance and Product and Process Innovations By Martin Backfisch
  5. Intellectual property rights hinder sequential innovation: Experimental evidence By Brüggemann, Julia ; Crosetto, Paolo ; Meub, Lukas ; Bizer, Kilian
  6. A Perceptual Measure of Innovation Performance: Micro Level Evidence from Turkey By Fındık, Derya ; Beyhan, Berna
  8. A new perspective on the innovator’s dilemma By Berglund, Henrik ; Sandström, Christian
  9. Effects of intellectual property rights protection and integration on economic growth and welfare By Lai, Chung-hui ; Wang, Vey
  10. Which firms use trademarks - and why? Representative firm-level evidence from Germany By Crass, Dirk
  11. Exporting, Innovation and the Role of Immigrants By Isabelle Sin ; Richard Fabling ; Adam B. Jaffe ; David C. Maré ; Lynda Sanderson
  13. A model of IPRs in the international supply chain of seeds and agricultural production By Eaton, Derek
  14. Knowledge spillovers through international supply chains By Piermartini, Roberta ; Rubínová, Stela
  15. Measuring Design and its Role in Innovation By Fernando Galindo-Rueda ; Valentine Millot
  16. Financing Innovation with Unobserved Progress By Zehao Hu
  17. A methodological proposal to approach farmers’ adoption behavior: stated preferences and perceptions of the innovation By Roussy, Caroline ; Ridier, Aude ; Chaib, Karim
  18. The impact of the 2008 financial crisis on European enterprises: the role of innovation systems By Jan de Kok ; O Som ; P Neuhäusler
  19. Role of Platform Providers in Software Ecosystems By Kibae Kim ; Jörn Altmann ; Sodam Baek
  20. Individual determinants of inventor productivity: Report and preliminary results with evidence from linked human capital and patent data By Frosch, Katharina ; Harhoff, Dietmar ; Hoisl, Karin ; Steinle, Christian ; Zwick, Thomas
  21. Comparative Analysis of Innovative Activity Determinants in Companies of Small and Medium Enterprises Sector in Brazil and Poland. Results of empirical researches By Tomasz Norek ; Daniel Luis Arenhardt

  1. By: Crass, Dirk
    Abstract: The market launch of product innovations is the most visible output of a firm's investment in innovation activities. To achieve this objective most efficiently, firms strengthen their technological capabilities, acquire external knowledge in a number of different ways, and optimize their innovation process. The success of a firm's innovation strategy has two dimensions: First, the ability of a firm to master the research and development process, leading to the market introduction of a product innovation. Second, the ability to turn the market introduction of a product innovation into commercial success. While a firms technological abilities make a product innovation possible, this product might face a lack of interest among potential customers after its market introduction. The introduction of a product innovation under a brand name might generate interest, adds credibility and reputation and has the potential for the firm to better appropriate the returns from its innovations. This paper investigates the role of brand use for the commercial success of product innovations, using a representative sample of German firms. The results show that firms can improve the odds of commercial success by pursuing a branding strategy. The market introduction of a product innovation is shown to be associated with 35% larger sales if the firm uses an established brand to introduce the product innovation into the market.
    Keywords: innovation performance,brands,trademarks,innovation,Germany
    JEL: O32 O34
    Date: 2014
  2. By: Maietta, Ornella Wanda
    Abstract: The objective of the paper is to determine the role that R&D networking, through the collaboration of firms with universities, plays among the determinants of product and process innovation in the Italian food and drink industry and how geographical proximity to a university affects both R&D university-industry collaboration and innovation. The data are sourced from the 7th (1995-1997), 8th (1998-2000), 9th (2001-2003) and 10th (2004- 2006) waves of Capitalia survey. The approach is a trivarate probit analysis in which the dependent variables are R&D collaboration with a university, process and product innovation; the independent variables are firm, territorial and university characteristics.
    Keywords: Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession,
    Date: 2014–08
  3. By: Braunerhjelm, Pontus (Swedish Entrepreneurship Forum, Department of Industrial Economics and Management, Centre of Excellence for Science and Innovation Studies (CESIS) & Royal Institute of Technology (KTH) ); Henrekson, Magnus (Research Institute of Industrial Economics (IFN) )
    Abstract: This paper examines policy measures that foster the creation of innovations with high inherent potential and that simultaneously provide the right incentives for individuals to create and expand firms that disseminate such innovations in the form of highly valued products. In so doing, we suggest an innovation policy framework based on two pillars: (i) the accumulation, investment, and upgrading of knowledge and (ii) the implementation of mechanisms that enable knowledge to be exploited such that growth and societal prosperity are encouraged. Knowledge is a necessary but far from sufficient condition for growth. To secure industrial dynamics and growth in the long term, institutions must be designed both to encourage sophisticated knowledge investments and to stimulate the creation, diffusion and productive use of knowledge in all sectors of the economy. We argue that the latter area has been overlooked in the policy discussion and that a coherent innovation policy framework must include tax policy, labor market regulation, savings channeling, competition policy, housing market regulation, and infrastructure to foster growth and future prosperity.
    Keywords: Entrepreneurship; Innovation; Institutions; Innovation policy; R&D; Technology transfer; University-industry relations
    JEL: J24 O31 O32 O57
    Date: 2015–01–13
  4. By: Martin Backfisch (Duale Hochschule Baden-Württemberg )
    Abstract: Firms’ search for external knowledge is one aspect of knowledge integration in the innovation process. The literature has investigated innovation and the breadth of search in different information channels. We introduce the concept of search balance reflecting the heterogeneity of a firm’s knowledge base. Results from German Community Innovation Survey data shows that search balance is positively connected to the introduction of product as well as process innovations. The connection is stronger for process innovations. The relative balance between all information sources used by firms is important for process innovations, but less so for product innovations. Product innovations rely on specific search directions where internal or market-based knowledge is found, offering an alternative to balanced search. Such an alternative does not exist for process innovations such that knowledge from specific information channels has to be accompanied by balanced search in other channels to be successfully used for process innovations.
    Keywords: Openness, knowledge sources, innovative search, search balance, innovation, innovation performance
    JEL: K21 K42 L41
    Date: 2014
  5. By: Brüggemann, Julia ; Crosetto, Paolo ; Meub, Lukas ; Bizer, Kilian
    Abstract: In this paper we contribute to the discussion on whether intellectual property rights foster or hinder innovation by means of a laboratory experiment. We introduce a novel Scrabble-like creativity task that captures most essentialities of a sequential innovation process. We use this task to investigate the effects of intellectual property allowing subjects to assign license fees to their innovations. We find intellectual property to have an adversely effect on welfare as innovations become less frequent and less sophisticated. Communication among innovators is not able to prevent this detrimental effect. Introducing intellectual property results in more basic innovations and subjects fail to exploit the most valuable sequential innovation paths. Subjects act more self-reliant and non-optimally in order to avoid paying license fees. Our results suggest that granting intellectual property rights hinders innovations, especially for sectors characterized by a strong sequentiality in innovation processes.
    Keywords: innovation,intellectual property,laboratory experiment,real effort task,creativity
    JEL: C91 D89 K39
    Date: 2015
  6. By: Fındık, Derya ; Beyhan, Berna
    Abstract: This paper aims to introduce a qualitative indicator to measure innovation performance of Turkish firms by using firm level data collected by Turkish Statistical Institute (TURKSTAT) in 2008 and 2009. We propose a new indicator to measure the innovation performance which is simply based on the perception of firms regarding to the impacts of innovation. In order to create performance indicators we conduct a factor analysis to group the firms’ perceptions on the impacts of innovation. Factor analysis gives us product and process oriented impacts of innovation. There are significant differences among product innovators, process innovators and firms engaged in both product and process innovations with respect to their perceptions on product and process oriented impacts of innovation. Among these three groups, product and process oriented impacts provide a highest value for the firms that perform both product and process innovations. As far as the link between firm characteristics and the impact of innovation is considered, there is a significant difference between small and large firms with respect to their perceptions on product oriented impact of innovation.While product oriented impact are larger for small firms, large firms focus more on process oriented impact. Anova results also indicate that perceptions on process oriented impact significantly differ among exporter firms, domestic market oriented firms and firms being active in internal and external markets. Process oriented impact generate results in favor of exporting firms.
    Keywords: innovation impact, product oriented impact, process oriented impact
    JEL: L2 M1 M2 O3
    Date: 2014–12
  7. By: Tambo, Justice A. ; Wünscher, Tobias
    Abstract: While farmers have been recognised as one of the key sources of innovation, many studies on agricultural innovations continue to consider farmers as adopters of externally-driven innovations only. Based on cross-sectional data from 409 farm households, this study, in contrast, analyses the innovation-generating behaviour among rural farmers in northern Ghana. Inspired by two innovation theories – induced innovation and innovation systems – we focus on the determinants of innovation behaviour. Employing recursive bivariate probit and endogenous treatment-regression models which control for selection bias, we find that participation in Farmer Field Fora, a participatory extension approach with elements of the innovation systems perspective, is a key determinant of innovation behaviour in farm households. Other important determinants are education, climate shocks and risk preferences. These results are robust to alternative specifications and estimation techniques.
    Keywords: Determinants, Farmer Field Fora, farmer innovation, Ghana, innovation systems, Labor and Human Capital, Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession,
    Date: 2014–08
  8. By: Berglund, Henrik (Chalmers University of Technology ); Sandström, Christian (The Rato institute )
    Abstract: Abstract: Why do entrant firms sometimes gain the upper hand under conditions of discontinuous technological change? Previous research on this topic has either looked at the role of established competencies and/or firm incentives to invest in a new technology. In this paper we explore an alternative explanation. Drawing upon evidence from the ongoing transition from CCTV to digital, IP based video surveillance, we argue that entrant firms may be more prone to act entrepreneurially, i.e. more inclined to proactively create or transform markets and build ecosystems. As new technologies frequently require altered behaviour among customers and stakeholders, this capability is sometimes critical in order to succeed in a technological transition. Our contribution therefore lies in pointing out that not only may incentives to allocate R&D resources differ among entrants and incumbents, firms might also have different incentives to engage in entrepreneurial activities of creating or transforming markets.
    Keywords: Disruptive Innovation; Entrepreneurship; Incentives; Technological Discontinuities; business model; ecosystem.
    JEL: O14
    Date: 2014–12–31
  9. By: Lai, Chung-hui ; Wang, Vey
    Abstract: The protection of intellectual property rights (IPR) and the distribution of rent are central issues in R&D-based growth models with the return to innovation serving as the engine of growth. In this paper the authors consider the strength of the intellectual property rights and franchise bargaining system to analyze how the rent/franchise fee and institutional quality affect the economic growth and social welfare. It is found that the intermediate good firm with full IPR protection charges a price equal to the marginal cost. In addition, if imitated technologies exhibit a labor spillover effect, decreasing the IPR protection will increase the rent/franchise fee. The authors also show that the growth-maximizing effects of IPR protection, the bargaining power of intermediate goods firms, and the imitation of technology are no longer equivalent to those effects on welfare-maximization since the welfare result depends on the relative degrees of the growth enhancing effect and crowding-out effect on production.
    Keywords: IPR,R&D,bargaining,endogenous growth,social welfare
    JEL: L11 O40 O30
    Date: 2015
  10. By: Crass, Dirk
    Abstract: Trademarking firms are more productive, generate higher profits, and have a better survival rate. Trademarking firms are in one word more successful, which might motivate non-trademarking firms to adopt a trademark strategy. But this seems not to be the case. The proportion of trademarking firms in the German business sector amounts to just 18%. This figure is quite low, given that nearly each firm has reputation to protect. But why has the vast majority of firms no registered trademarks? Using a representative sample of German firms, the present paper links certain firm characteristics to a firms' propensity to register trademarks. The empirical results point to circumstances under which trademarks are significantly more often used: this is the case where a large distance between a firm and its customers exists, a firm's product quality is difficult to assess, a firm's products are characterized by a limited (but not strong) substitutability, and where a firm is engaged in R&D and introduces innovative products. Trademarks are considerably less frequently used if none of this is the case.
    Keywords: Intellectual Property Rights,Trademarks,Reputation,Innovation
    JEL: C25 D21 L14 O34
    Date: 2014
  11. By: Isabelle Sin (Motu Economic and Public Policy Research ); Richard Fabling (Motu Economic and Public Policy Research ); Adam B. Jaffe (Motu Economic and Public Policy Research ); David C. Maré (Motu Economic and Public Policy Research ); Lynda Sanderson (New Zealand Treasury )
    Abstract: This research uses Statistics New Zealand’s Integrated Data Infrastructure and data from the Business Operations Survey to investigate the correlations at the firm level between a) employee characteristics and firm international engagement, and b) firm international engagement and innovation. The main findings on employee characteristics and international engagement are: • Firms that employ a higher fraction of high-ability foreigners (and thus a lower fraction of high-ability natives) are more likely to export. • Firms that employ a higher proportion of people who previously worked for an exporter are more likely to export. • The proportions of foreign employees and employees with export experience are correlated with many other types of international engagement by firms. • Employees from Australia and the Pacific and from Europe are positively correlated with firm exporting. The correlations are absent for foreign employees from Asia. • The probability that a firm earns income in a given country is more correlated with its fraction of employees from that country than with its total fraction of foreign employees. • A firm with a higher fraction of employees from a given country is more likely to earn income in that country only if the country is developed. The main findings on international engagement and innovation are: • Firms that export innovate more, even after controlling for size. • Among exporters, the proportion of firm sales that comes from exports shows little correlation with innovation. • Firms that export to more countries innovate more. • Exports of raw goods have little correlation with innovation; exports of manufactured goods or services have a strong correlation. • Firms that recently entered a new export market report especially high innovation, and firms that began earning overseas income in the previous two years report higher innovation than those that have earned overseas income for a longer period. • Not all export destinations are correlated with higher innovation. Exports to the Americas are positively correlated with innovation, but there is no evidence that firms that export more to Asia are more likely to innovate. • In addition to exporting, most other types of international engagement, such as inward and outward foreign direct investment, are positively correlated with innovation. • Firms' sources of ideas for innovation vary with the types of international engagement in which they are involved. The patterns are consistent with exporters gaining ideas from their international customers, firms gaining ideas from their foreign owners, and importers gaining ideas from their foreign suppliers. Although these relationships are correlations only and should not be interpreted as proof of causality, they do suggest that the experience and specialized knowledge of employees may be relevant to firms’ decisions to engage internationally, and that such engagement may act as a conduit for foreign knowledge to enter the country.
    Keywords: exporting, innovation, migrants, international engagement, workforce composition
    JEL: O31 F16 F22 J61 J24
    Date: 2014–12
  12. By: Mattia Tassinari ; Marco R. Di Tommaso (University of Ferrara )
    Abstract: The economic crisis has shown the weakness of some Italian industries, calling for an effective policy response for promoting innovation of the national system. In this context, the ability to evaluate the presence of cooperative forms of innovation and of open innovation practices becomes extremely important in order to define efficient and effective industrial policy strategies. The purpose of this paper is to assess the different degree of openness of innovation processes in Italian manufacturing industries, in order to get useful information for industrial policy decisions. The analysis is conducted through the construction of two different composite indicators. The first, the Open Innovation Index (OII), provides a ranking of the Italian manufacturing industries on the basis of the different degree of openness of innovation processes of enterprises. The second, the Economic Performance Index (EPI), aims to classify manufacturing industries considering the sectoral performance in term of innovative capacity, productivity and ability to promote economic growth. Some policy implications are derived from the comparison between the two rankings.
    Keywords: Open Innovation, Industrial Policy, Manufacturing, Composite Indicator
    JEL: O32 L14
    Date: 2014–12
  13. By: Eaton, Derek
    Abstract: This paper analyzes the effects of varying appropriability or strength of IPRs for agricultural seeds. Farmers are modelled as heterogeneous producers, purchasing seed from an innovating monopolist in a vertical product differentiation framework. The effects of IPRs on innovation are endogenized and the welfare of consumers assessed through the price for food. The theoretical analysis reveals some novel aspects of the traditional innovation versus diffusion tradeoff. Less productive producers, and also consumers, are better off with a moderate level of appropriability and lower level of innovation. The model is extended to a two country setting consisting of North and South.
    Keywords: innovation, intellectual property, product differentiation, trade, Crop Production/Industries, International Relations/Trade,
    Date: 2014–08
  14. By: Piermartini, Roberta ; Rubínová, Stela
    Abstract: We also show that the evidence that knowledge spillovers flow along the supply chains is more robust than the traditional finding that knowledge spillovers depend on geographical distance or trade flows. Our findings support policies that favour participation in supply chains to foster economic development, but also show that potential gains depend on the type of participation.
    Keywords: Knowledge spillovers,International production networks,Intermediate inputs trade,Innovation
    JEL: F43 O31
    Date: 2014
  15. By: Fernando Galindo-Rueda ; Valentine Millot
    Abstract: This working paper sums up the main findings of an OECD project aiming to provide an evidence basis for focusing efforts to improve the measurement of technological and non-technological forms of business innovation, with particular focus on the role of design. It reviews a broad range of novel design-related measures, indicating their advantages and limitations in terms of policy relevance and insights. The analysis of design provides a valuable test-case for assessing the robustness of the overall framework for measuring innovation as proposed in the OECD/Eurostat Oslo Manual. It identifies a number of areas for potential development in a future revision, focused on the role of users and the implementation of the definition of innovation and innovation activities. It also identifies a range of design concepts based on an informal consultation with the design expert community. <P> The paper also illustrates a number of findings arising from the first-time use of a set of experimental and optional questions on design implementing a “ladder-type” model of design which describes levels of sophistication and integration of the design function within the firm. Cognitive testing and analysis of the microdata from a large and representative sample of Danish firms shows a high degree of respondent acceptance of the experimental questions and supports their predictive validity vis-à-vis a number of hypotheses on the use of design and a series of innovation and economic outcomes potentially associated to it.
    Keywords: innovation, surveys, technology, design, measurement
    Date: 2015–01–19
  16. By: Zehao Hu (Department of Economics, University of Pennsylvania )
    Abstract: This paper studies the problem of incentivizing an agent in an innovation project when the progress of innovation is known only to the agent. I assume the success of innovation requires an intermediate breakthrough and a final breakthrough, with only the latter being observed by the principal. Two properties of optimal contracts are identified. First, conditional on the total level of financing, optimal contracts induce efficient actions from the agent. Second, the reward for success to the agent is in general non-monotone in success time and later success may be rewarded more. The latter property is consistent with the use of time-vested equity as part of compensation schemes for entrepreneurs. I then extend the model by introducing randomly arriving buyers and apply it to study the financing of startup firms with opportunities to be acquired. I show that the potential acquisition increases the cost of providing incentives. Since an agent with low level of progress is “bailed out” when an offer is made to acquire firms with both high and low levels of progress, the agent has more incentive to shirk. In response, the principal reduces the likelihood that the firm with high level of progress is sold. Moreover, the total financing provided by the principal is less compared to the environment without buyers.
    Keywords: Contract Theory, Dynamic Agency, Multistage Innovation, Asymmetric Information, Venture Capital, Acquisition
    JEL: C73 D82 G32
    Date: 2014–11–26
  17. By: Roussy, Caroline ; Ridier, Aude ; Chaib, Karim
    Abstract: In order to approach farmers’ adoption behavior of innovative cropping systems (ICS) on a sample of specialized cereal French farmers, a methodological protocol combining stated preferences and perceptions is designed. An original choice modelling protocol allows analyzing farmers’ preferences facing an adoption decision (dichotomous choice) but also the level of adoption (number of hectare adopted). By gathering the data on farmers’ preferences, perceptions and characteristics, this experiment allows revealing the determinants of the adoption of ICS.
    Keywords: adoption, innovative cropping system, stated preferences, perception, Research and Development/Tech Change/Emerging Technologies,
    Date: 2014–08
  18. By: Jan de Kok ; O Som ; P Neuhäusler
    Abstract: While after the 2008 financial crisis most European enterprises were faced with a reduction in the demand for their products, some were not. This study examines to which extent this depends on the overall innovation performance of their domestic country. The innovativeness of a country is reflected by the share of frequent innovators in a country and by the level of technological specialisation of a country. Our results show that the share of frequent innovators in a country does not affect the probability that individual enterprises are faced with negative demand effects of an economic crisis. If we interpret the share of frequent innovators as an indicator of the overall performance level of innovation of a country, this implies that – despite the overall innovativeness of a country might help to shorten times of recovery after a crisis – it does not mitigate the crisis’ effects on the turnover of individual enterprises. Our results further show a negative effect of technological specialisation: higher levels of technological specialisation are associated with a higher probability for individual enterprises to be faced with negative demand effects of an economic crisis. The size of this effect is considerable: on average, the difference in the probability that enterprises are faced with negative demand effects between the lowest and highest level of technical specialisation is approximately 10% points. Finally, our findings also show that smaller and older firms were more often faced by a reduction in their demand than larger and younger firms.      
    Date: 2014–12–18
  19. By: Kibae Kim (Technology Management, Economics, and Policy Program; College of Engineering; Seoul National University ); Jörn Altmann (Technology Management, Economics, and Policy Program; College of Engineering; Seoul National University ); Sodam Baek (Technology Management, Economics, and Policy Program; College of Engineering; Seoul National University )
    Abstract: Through the advancement of information technology, a new type of innovation could emerge. This innovation type suggests a leading company to open up its software service platform to customers as well as competitors. Many innovation studies have been performed in the past, in order to understand the structure of this interaction among platform users from a network science perspective. By focusing on the internal mechanisms of software vendors only, these studies missed the role of platform providers in the innovation process though. In this paper, we fill this gap by investigating the impact of platform providers on the structure of a software service network. The empirical data about the software services network has been gathered from AppExchange. It is used to identify the clusters in the network and the network position of each software service. Using the Kruskal-Wallis test, we infer from those results that the network position of the platform providers software services is different from the network position of software services of third party vendors. In particular, our results show that the software services released by the platform provider locate at hub positions, while those released by third party vendors locate at positions interconnecting clusters. These results imply a role division between platform providers and third party vendors in this innovation type. The former leads the overall innovation on the platform, while the third party vendors interconnect software services of different categories.
    Keywords: Open Innovation, Software Ecosystem, Platform-as-a-Service, Software-as-a-Service,, Platform Leadership, Network Analysis, Kruskal-Wallis Test.
    JEL: A12 C12 D85 L86 M15 O32
    Date: 2015–01
  20. By: Frosch, Katharina ; Harhoff, Dietmar ; Hoisl, Karin ; Steinle, Christian ; Zwick, Thomas
    Abstract: This report offers new insights into the drivers of inventor productivity at the individual level. It includes well-known drivers, such as inventor age and education, and controls for inventor team size, and firm/applicant information, as well as period and technology field effects derived from patent data. In addition, it adds inventor characteristics that have been largely neglected in existing studies on inventor productivity, such as the breadth of work experience, divergent thinking skills, cognitive problem-solving skills, the use of knowledge sourced from networks within and outside of the inventors' field of expertise, and personality traits. The empirical model draws on a new dataset that matches information about inventors' human capital, such as creative skills, personality traits, networks, and career biographies (collected with a self-administered survey) with patenting histories for 1932 German inventors between the years 1978 and 2012 for clean technology, nanotechnology, and mechanical elements. Our results indicate that the additional inventor characteristics double the proportion of total variation of productivity explained by individual characteristics. Furthermore, we find differences in the importance of individual characteristics across industries and along the productivity distribution, between more and less productive inventors.
    Date: 2015
  21. By: Tomasz Norek (University of Szczecin, Poland ); Daniel Luis Arenhardt (Federal University of Santa Maria, Brasil )
    Abstract: The basic goal of this article is an attempt to conduct comparative analysis of innovation determinants in companies of small and medium enterprises sector in Brazil and Poland. The comparison shall enable evaluation which determinants stimulate and which are barriers to innovativeness development in the SME sector in the researched countries. Additionally, such comparison shall indicate if and in what way the economical potentials, cultural differences and different historical conditions of the economic development of the researched countries influence the determinants of the innovative activity of the SME sector. The Authors put forward the following research hypothesis: H1: The determinants forming the innovative potential are similar for Brazilian and Polish companies of SME sector. In order to examine the hypothesis, the Authors have browsed the world literature on the subject of innovative actions determinants in companies with a special consideration of SME sector companies, they have presented the present condition of innovativeness in SME sector companies in Brazil and Poland (an Internet questionnaire has been used in the research) and they have conducted own empirical researches on the determinants influencing the innovativeness level. The received results have been subject to basic statistical comparative analysis and on this basis with the logical induction the Authors have made conclusions on the determinants of innovative activity in researched companies. The article includes the results of all the empirical researches conducted by the Authors in the years 2009-2013 and generally available data considering the innovativeness level in the researched countries.
    Keywords: innovative SMEs; determinants of innovation activity; SMEs in Brazil and Poland
    JEL: O10 O30 O50 O57
    Date: 2014–12

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