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Determinants of European Firm's Innovation and the Role of Public Financial Support

Author

Listed:
  • Jan Huňady
  • Marta Orviská
  • Beata Šarkanová

Abstract

Innovation activities at firm-level are often significantly influenced by factors that determine the outcome of the innovation process. The primary aim of this paper is to study and empirically verify the role of several determinants that affect company innovations in the European Union. The dataset for the analysis comes from Flash Eurobarometer 394 survey carried out in early 2014 and covers issues related to innovation activities, commercialization of innovation and also public support. We summarize the answers on selected questions from the survey by country, and subsequently based on the dataset, we perform regression analysis. In line with our primary assumptions, our results suggest that R&D activities on firm-level and their support represent the key factors substantially responsible for innovations. The work emphasizes the importance of firm characteristics and substantial differences between different types of innovation. Public sector support of innovation is also crucial.

Suggested Citation

  • Jan Huňady & Marta Orviská & Beata Šarkanová, 2014. "Determinants of European Firm's Innovation and the Role of Public Financial Support," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2014(1), pages 62-84.
    • Handle: RePEc:prg:jnlefa:v:2014:y:2014:i:1:id:115
    DOI: 10.18267/j.efaj.115
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    References listed on IDEAS

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    Cited by:

    1. Hiadlovsky Vladimir & Hunady Jan & Orviska Marta & Pisar Peter, 2018. "Research Activities and their Relation to Economic Performance of Regions in the European Union," Business Systems Research, Sciendo, vol. 9(1), pages 44-54, March.

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    More about this item

    Keywords

    Firm; Innovation; Public support; R& D activities;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • 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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