IDEAS home Printed from https://ideas.repec.org/p/sec/cnstan/0390.html
   My bibliography  Save this paper

The Innovation Patterns of Firms in Low and High Technology Manufacturing Sectors in the New Member States

Author

Listed:
  • Ewa Balcerowicz
  • Marek Peczkowski
  • Anna Wziatek-Kubiak

Abstract

For many years, analysis on innovations focused on high technology industries which were treated as synonymous with high competitiveness and growth. New research on low and medium technology industries has revealed that their growth is also based on innovations, though their sources differ from high technology industries. As the 'catching up' economies of the EU New Member States (NMS) are based on low and medium technology industries, the differences in innovativeness between high and low technology sector firms as well as within each of the sectors can play an important role in the future development of these countries. This paper aims to show the differences in innovation patterns among manufacturing firms operating in low and high technology sectors in the Czech Republic, Hungary and Poland. It is based on a survey of firms which took into account innovation inputs, cooperation among firms in R&D activities, the benefits of cooperation with business partners, innovation outputs and international competitiveness. The sample consisted of 358 firms operating in both low and medium technology industries (food and beverages and automotive) and high technology industries (pharmaceuticals and electronics). After employing cluster analysis, five types of innovation patterns were detected, characterised and compared in firms operating in the low and medium technology (LMT) sectors, and four in the high technology (HT) sector. Differences and similarities in innovation patterns between firms operating in each of the two sectors are discussed. The paper shows that external knowledge plays a crucial role in innovation activities in NMS' firms. The ability to explore cooperation with business partners and the use of external knowledge are more important for the international competitiveness of the NMS' products than in-house innovation resources.

Suggested Citation

  • Ewa Balcerowicz & Marek Peczkowski & Anna Wziatek-Kubiak, 2009. "The Innovation Patterns of Firms in Low and High Technology Manufacturing Sectors in the New Member States," CASE Network Studies and Analyses 0390, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnstan:0390
    as

    Download full text from publisher

    File URL: https://case-research.eu/upload/publikacja_plik/25872698_390_CNSA.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Montobbio, Fabio & Rampa, Francesco, 2005. "The impact of technology and structural change on export performance in nine developing countries," World Development, Elsevier, vol. 33(4), pages 527-547, April.
    2. Grimpe, Christoph & Sofka, Wolfgang, 2009. "Search patterns and absorptive capacity: Low- and high-technology sectors in European countries," Research Policy, Elsevier, vol. 38(3), pages 495-506, April.
    3. Hartmut Hirsch-Kreinsen & Katrin Hahn & David Jacobson, 2008. "The Low-Tech Issue," Chapters, in: Hartmut Hirsch-Kreinsen & David Jacobson (ed.), Innovation in Low-Tech Firms and Industries, chapter 1, Edward Elgar Publishing.
    4. Heidenreich, Martin, 2009. "Innovation patterns and location of European low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 483-494, April.
    5. David Jacobson & Hartmut Hirsch-Kreinsen & Keith Smith & Staffan Laestadius, "undated". "Low-Tech Industries and the Knowledge Economy: State of the Art and Research Challenges," STEP Report series 200316, The STEP Group, Studies in technology, innovation and economic policy.
    6. Godin, Benoit, 2004. "The obsession for competitiveness and its impact on statistics: the construction of high-technology indicators," Research Policy, Elsevier, vol. 33(8), pages 1217-1229, October.
    7. Kirner, Eva & Kinkel, Steffen & Jaeger, Angela, 2009. "Innovation paths and the innovation performance of low-technology firms--An empirical analysis of German industry," Research Policy, Elsevier, vol. 38(3), pages 447-458, April.
    8. Santamara, Llus & Nieto, Mara Jess & Barge-Gil, Andrs, 2009. "Beyond formal R&D: Taking advantage of other sources of innovation in low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 507-517, April.
    9. Jorge Alcaide-Marzal & Enrique Tortajada-Esparza, 2007. "Innovation assessment in traditional industries. A proposal of aesthetic innovation indicators," Scientometrics, Springer;Akadémiai Kiadó, vol. 72(1), pages 33-57, July.
    10. Clarke, Leon & Weyant, John & Birky, Alicia, 2006. "On the sources of technological change: Assessing the evidence," Energy Economics, Elsevier, vol. 28(5-6), pages 579-595, November.
    11. Flor, M. L. & Oltra, M. J., 2004. "Identification of innovating firms through technological innovation indicators: an application to the Spanish ceramic tile industry," Research Policy, Elsevier, vol. 33(2), pages 323-336, March.
    12. Paul Robertson & Eduardo Pol & Peter Carroll, 2003. "Receptive Capacity of Established Industries as a Limiting Factor in the Economy's Rate of Innovation¹," Industry and Innovation, Taylor & Francis Journals, vol. 10(4), pages 457-474.
    13. Hartmut Hirsch-Kreinsen & David Jacobson (ed.), 2008. "Innovation in Low-Tech Firms and Industries," Books, Edward Elgar Publishing, number 13088.
    14. Robertson, Paul L. & Patel, Parimal R., 2007. "New wine in old bottles: Technological diffusion in developed economies," Research Policy, Elsevier, vol. 36(5), pages 708-721, June.
    15. Menrad, K., 2004. "Innovations in the food industry in Germany," Research Policy, Elsevier, vol. 33(6-7), pages 845-878, September.
    16. Stefano Brusoni & Giorgia Sgalari, 2006. "New combinations in old industries," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 25-43, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rammer, Christian & Köhler, Christian & Murmann, Martin & Pesau, Agnes & Schwiebacher, Franz & Kinkel, Steffen & Kirner, Eva & Schubert, Torben & Som, Oliver, 2010. "Innovationen ohne Forschung und Entwicklung: Eine Untersuchung zu Unternehmen, die ohne eigene FuE-Tätigkeit neue Produkte und Prozesse einführen," Studien zum deutschen Innovationssystem 15-2011, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    2. Ioanna Kastelli & Aggelos Tsakanikas & Yannis Caloghirou, 2018. "Technology transfer as a mechanism for dynamic transformation in the food sector," The Journal of Technology Transfer, Springer, vol. 43(4), pages 882-900, August.
    3. Muhammad Nouman & Mohammad Sohail Yunis & Muhammad Atiq & Owais Mufti & Abdul Qadus, 2022. "‘The Forgotten Sector’: An Integrative Framework for Future Research on Low- and Medium-Technology Innovation," Sustainability, MDPI, vol. 14(6), pages 1-19, March.
    4. Piotr Dzikowski, 2022. "Product and process innovation patterns in Polish low and high technology systems," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(3), pages 747-773, September.
    5. Arkadiusz Swiadek & Piotr Dzikowski & Marek Tomaszewski & Jadwiga Goraczkowska, 2016. "Structural Determinants of Innovation in Industry: The Pavitt Model in the Polish Economy (Strukturalne uwarunkowania aktywnosci innowacyjnej w przemysle – model Pavitta w polskiej gospodarce)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 14(62), pages 202-224.
    6. Paul L. Robertson & David Jacobson, 2011. "Knowledge Transfer and Technology Diffusion: An Introduction," Chapters, in: Paul L. Robertson & David Jacobson (ed.), Knowledge Transfer and Technology Diffusion, chapter 1, Edward Elgar Publishing.
    7. Trott, Paul & Simms, Chris, 2017. "An examination of product innovation in low- and medium-technology industries: Cases from the UK packaged food sector," Research Policy, Elsevier, vol. 46(3), pages 605-623.
    8. Bodas Freitas, Isabel Maria & Marques, Rosane Argou & Silva, Evando Mirra de Paula e, 2013. "University–industry collaboration and innovation in emergent and mature industries in new industrialized countries," Research Policy, Elsevier, vol. 42(2), pages 443-453.
    9. Yannis D. Caloghirou & Aimilia Protogerou & Aggelos Tsakanikas, 2014. "Exploring knowledge-intensive entrepreneurship in high-tech and low-tech manufacturing sectors: differences and similarities," Chapters, in: Hartmut Hirsch-Kreinsen & Isabel Schwinge (ed.), Knowledge-Intensive Entrepreneurship in Low-Tech Industries, chapter 2, pages 17-41, Edward Elgar Publishing.
    10. José Albors-Garrigos & José L. Hervas-Oliver, 2011. "Making sense of innovation by R&D and non-R&D innovators in low technology contexts: a forgotten lesson for policymakers," Working Papers. Serie EC 2011-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    11. Simms, Christopher & Frishammar, Johan, 2024. "Technology transfer challenges in asymmetric alliances between high-technology and low-technology firms," Research Policy, Elsevier, vol. 53(3).
    12. Heidenreich, Martin, 2009. "Innovation patterns and location of European low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 483-494, April.
    13. Figueiredo, Paulo N. & Cabral, Bernardo P. & Silva, Felipe Q., 2021. "Intricacies of firm-level innovation performance: An empirical analysis of latecomer process industries," Technovation, Elsevier, vol. 105(C).
    14. Andrés Barge-Gil & Alberto López, 2015. "R versus D: estimating the differentiated effect of research and development on innovation results," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 93-129.
    15. Reichert, Fernanda Maciel & Torugsa, Nuttaneeya (Ann) & Zawislak, Paulo Antonio & Arundel, Anthony, 2016. "Exploring innovation success recipes in low-technology firms using fuzzy-set QCA," Journal of Business Research, Elsevier, vol. 69(11), pages 5437-5441.
    16. Seo, Hangyeol & Chung, Yanghon & Yoon, Hyungseok (David), 2017. "R&D cooperation and unintended innovation performance: Role of appropriability regimes and sectoral characteristics," Technovation, Elsevier, vol. 66, pages 28-42.
    17. MahdaviMazdeh, Hossein & Saunders, Chad & Hawkins, Richard William & Dewald, Jim, 2021. "Reconsidering the dynamics of innovation in the natural resource industries," Resources Policy, Elsevier, vol. 72(C).
    18. Woodfield, Paul J. & Ooi, Yat Ming & Husted, Kenneth, 2023. "Commercialisation patterns of scientific knowledge in traditional low- and medium-tech industries," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    19. Michaela Trippl, 2010. "Low_Tech Innovation in a High-Tech Environment? The Case of the Food Industry in the Vienna Metropolitan Region," SRE-Disc sre-disc-2010_02, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    20. Klimczuk-Kochańska, Magdalena, 2016. "Rola innowacji miękkich w badaniach innowacyjności przedsiębiorstw z sektorów niskotechnologicznych na przykładzie sektora spożywczego [The Role of the Soft Innovation in the Research of Low-Tech S," MPRA Paper 84757, University Library of Munich, Germany.

    More about this item

    Keywords

    Innovation of firms; Innovation patterns; Innovation sources; Diversification of innovations; Low-tech industries; High-tech industries; EU New Member States;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sec:cnstan:0390. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anna Budzynska (email available below). General contact details of provider: https://edirc.repec.org/data/caseepl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.