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The role of firm-level factors and regional innovation capabilities for Polish SMEs

Author

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  • Lukasz Arendt

    (Department of Economic Policy, Faculty of Economics and Sociology, University of Lodz, P.O.W. 3/5, 90-255 Lodz, Poland, e-mail: lukasz.arendt@uni.lodz.pl, corresponding author)

  • Wojciech Grabowski

    (Ph.D., Department of Econometric Models and Forecasts, Faculty of Economics and Sociology, University of Lodz, Rewolucji 1905 no 39, 90-214 Lodz, Poland, e-mail: wojciech.grabowski@uni.lodz.pl)

Abstract

The paper elaborates on the innovativeness of Small and Medium-Sized Enterprises in Poland from the regional perspective. The empirical evidence is based on data collected among 820 Polish SMEs which actively use ICT tools in their business processes. Identifying firm-level (internal) and regional drivers of innovations in these enterprises was the main aim of this study. The originality of the utilized research approach lies in combining within one framework firm-level data with meso data describing the innovative potential of the regional environment and using multilevel random-effects models to analyze the relevance of firm-level and regional drivers of SMEs’ innovativeness. By deploying a regional random effects approach, we assessed indirectly the effectiveness of innovation policies conducted in Polish NUTS 2 regions within a RIS and S3 framework. Interestingly, the research hypothesis, stating that regional (external) factors are more important to enhance innovativeness of SME than firm-level (internal) drivers, was verified negatively. The study revealed that SMEs in less-developed regions of Poland rely more on in-house capabilities, than on the regional innovative potential, to introduce different types of innovations. This suggests that the S3 framework in less-developed regions should concentrate more on linking firm-level factors and regional innovation systems to enhance companies’ innovation capacity.

Suggested Citation

  • Lukasz Arendt & Wojciech Grabowski, 2019. "The role of firm-level factors and regional innovation capabilities for Polish SMEs," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 15(3), pages 11-44.
    • Handle: RePEc:aae:journl:v:15:y:2019:i:3:p:11-44
    DOI: 10.7341/20191531
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    References listed on IDEAS

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    Cited by:

    1. Anna Lewandowska & Herman Cherniaiev, 2022. "R&D Cooperation and Investments concerning Sustainable Business Innovation: Empirical Evidence from Polish SMEs," Sustainability, MDPI, vol. 14(16), pages 1-16, August.
    2. Patrycja Krawczyk & Judyta Kabus & Luiza Piersiala, 2020. "The Use of Information and Communication Technologies (ICT) in the Management of the TSL Industry: A Polish Example," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 1060-1073.
    3. Hädrich, Tobias & Reher, Leonie & Thomä, Jörg, 2023. "Solving the puzzle? An innovation mode perspective on lagging regions," ifh Working Papers 42/2023, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    4. Judyta Lubacha, 2024. "The Role of Regional Intangible Assets for the Innovation Activity of Enterprises: The case of Polish Regions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3635-3659, March.
    5. Wojciech Grabowski & Edward Stawasz, 2023. "Business consulting, knowledge absorptive capacity, and innovativeness: A triangular model for micro and small enterprises in Poland," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 19(1), pages 7-40.

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    More about this item

    Keywords

    SMEs; innovations; less-developed regions; multilevel probit model;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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