Evidence of innovation performance in the period of economic recovery in Europe
Journal
Innovation: The European Journal of Social Science Research
Date Issued
2018
Author(s)
Stojkoski, Viktor
DOI
10.1080/13511610.2018.1524288
Abstract
This paper provides empirical evidence on the innovation performance in the European
countries in the years of recovery from the global economic and financial crisis by using
the CDM model of simultaneous equations. The model directly links R&D engagement
and intensity to innovation outcomes measured either as process or as product
innovation, and then estimates the effectiveness of the innovative efforts leading to
productivity gains. The difference between the drivers of innovation systems and its
influence over the productivity growth is analyzed between two different institutional
settings in Europe. For that purpose a company-level dataset is used from the 2012
round of the Comunity Innovation Survey.
Тhe results indicated that the recent financial crisis had negative influence on the
companies’ willingness to innovate. The effect of the crisis led to further divergence
in the innovation systems of these two institutional settings. Identifying the
characteristics of the innovation systems and drivers of innovation during the turmoil
shows that policy instruments on EU level should be oriented towards creation of
competitive business environment, encouragement to adopt the best management
techniques and organizational structures and improvement of well-functioning
capital, product and labor markets.
countries in the years of recovery from the global economic and financial crisis by using
the CDM model of simultaneous equations. The model directly links R&D engagement
and intensity to innovation outcomes measured either as process or as product
innovation, and then estimates the effectiveness of the innovative efforts leading to
productivity gains. The difference between the drivers of innovation systems and its
influence over the productivity growth is analyzed between two different institutional
settings in Europe. For that purpose a company-level dataset is used from the 2012
round of the Comunity Innovation Survey.
Тhe results indicated that the recent financial crisis had negative influence on the
companies’ willingness to innovate. The effect of the crisis led to further divergence
in the innovation systems of these two institutional settings. Identifying the
characteristics of the innovation systems and drivers of innovation during the turmoil
shows that policy instruments on EU level should be oriented towards creation of
competitive business environment, encouragement to adopt the best management
techniques and organizational structures and improvement of well-functioning
capital, product and labor markets.