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

Addresses: 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.2016.083590

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

Available online: 10 Apr 2017 *

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