Abstract
The aim of the paper is to research the innovative capacities of local subsidiaries in selected CEE countries. We define innovative capacity as an ability of conducting innovation activities with innovation output variables i.e. innovation products and/or processes as the visible results of innovation inputs i.e. innovation investments. We found that the determinants of innovation input differ from the determinants of innovation output. The Innovation outputs variables are affected by productivity variables. On the other hand, local subsidiaries as a knowledge source for other unit of MNEs group as well as SMEs as a type of the ownership affect the innovation input determinants. However, similarities between innovation input and innovation output exist between business functions i.e. process engineering appear in both cases as determinants.The innovation performance measured by productivity are strongly reliant on local subsidiaries performance—changes in value in earning before interests and taxes, where investments into resources related to technologies are crucial i.e. differences in number of R&D employees between 2005 and 2002 and difference in the annual expenditure on R&D and innovation as a percentage of total sales positively influence local subsidiaries performance.
| Original language | English |
|---|---|
| Title of host publication | Innovation, Technology and Knowledge Management |
| Publisher | Springer |
| Pages | 277-300 |
| Number of pages | 24 |
| DOIs | |
| Publication status | Published - 2014 |
Publication series
| Name | Innovation, Technology and Knowledge Management |
|---|---|
| ISSN (Print) | 2197-5698 |
| ISSN (Electronic) | 2197-5701 |
Bibliographical note
Publisher Copyright:© 2014, Springer International Publishing Switzerland.
Funding
10Explanatory factors for the differences in the prices of the final products include the differences in sectoral structures of a national economy, and on the firm level functional structure (Steffen and Stephan [64]). 11Country selection is a result of participation in the U-KNOW project, partially financed by the European Commission (EC) Framework Programme 6 (contract nr CIT5-028519). 12Appendix 1 consists of the list of selected variables. 13In Croatia the survey took place in April and May 2007. Therefore the analysed years are different. In analysed countries the survey took place in 2002 and 2005 whereas in case of Croatia, the survey was conducted in 2003 and 2006.
| Funders | Funder number |
|---|---|
| European Commission | CIT5-028519 |
Keywords
- Absorptive Capacity
- External Knowledge
- Innovation Activity
- Innovation Output
- Innovation Performance