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Innovation performance of European SMEs: determined by regional or firm specific factors?

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  • Elena Makrevska Disoska
  • Katerina Toshevska-Trpchevska

Abstract

Different factors determine the innovation behaviour of European SMEs firms. The goal of this paper is to assess the impact of firm specific and regional specific factors on the innovation behaviour of the firms in Europe. The analysis is based on data from the Regional Innovation Scoreboard for 2017, particularly focusing on the performance of small and medium-sized enterprises (SMEs). The OLS regression shows that firm specific factors are of greater importance for the European firms in the observed regions. That suggests that regional environment is not an independent determinant of firms' innovation activity. Innovation activity is shaped by the characteristics of the firms. The regional innovation policies should focus more on the specific needs of the firms and help them realise their existing and unexploited innovation potential.

Suggested Citation

  • Elena Makrevska Disoska & Katerina Toshevska-Trpchevska, 2019. "Innovation performance of European SMEs: determined by regional or firm specific factors?," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 20(2), pages 253-265.
    • Handle: RePEc:ids:ijbire:v:20:y:2019:i:2:p:253-265
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    Cited by:

    1. Stojkoski, Viktor & Toshevska-Trpchevska, Katerina & Makrevska Disoska, Elena & Tevdovski, Dragan, 2021. "Identifying complementary relationships between different types of innovation: Evidence from Community Innovation Survey 2012," MPRA Paper 108753, University Library of Munich, Germany.

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