Int. J. of Transitions and Innovation Systems   »   2016 Vol.5, No.3/4



Title: Evaluating firms' innovation decision and innovation intensity in EU-13: differences between high-tech and low-tech firms


Authors: Besnik A. Krasniqi; Agon Dula


University of Prishtina, Prishtinë, Kosovo
Community Development Fund, Prishtinë, Kosovo


Abstract: We study differences in the innovation-performance relationship between high-tech, medium and low-tech firms, based on modified Crepo, Duguet and Mairesse (CDM) model. We investigate determinants of innovation incidence and intensity based on survey of 49,760 firms from EU-13. Results show that having a higher share of employees with university education increases probability of investing in innovation. The important strategic and aesthetic changes on products have positive impact innovation decisions. Organisational rigidities, lack of information on technology, and insufficient flexibility of regulations or standards, have a negative impact on probability to innovate. Firm perceiving economic risk to be excessive invest less in innovation. Among spill-over effects, only the variable national competitors and other firms from the same industry has a significant and positive impact on both innovation decision and innovation intensity. Findings suggest that innovation is equally important for firms' performance in both high-tech and low-tech firms. The study concludes with some managerial implications.


Keywords: innovation decision; innovation intensity; high-tech; low-tech; EU.


DOI: 10.1504/IJTIS.2016.10004472


Int. J. of Transitions and Innovation Systems, 2016 Vol.5, No.3/4, pp.194 - 230


Submission date: 28 Sep 2016
Date of acceptance: 10 Dec 2016
Available online: 10 Apr 2017



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