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Are the pandemic and innovation twins? Perceived financial obstacles, innovations, and entrepreneurial success

Author

Listed:
  • Florian Horky

    (Zeppelin University of Friedrichshafen, Friedrichshafen, Germany)

  • Nicola Tretter

    (Zeppelin University of Friedrichshafen, Friedrichshafen, Germany)

  • Jarko Fidrmuc

    (Zeppelin University of Friedrichshafen, Friedrichshafen, Germany; Faculty of Economics and Business Administration, Vilnius University, Vilnius, Lithuania; Mendel University Brno, Brno, Czech Republic; and University of Public Service, Budapest, Hungary)

Abstract

We investigate how pre-crisis obstacles of enterprises determine the impact of the COVID-19 pandemic in selected European countries. Moreover, we examine the effects of the coping strategies, in particular of innovation, and digitalization, to respond to the pandemic challenge. Thus, we try to contribute to a more granular understanding of the dynamics that play a pivotal role in managing a crisis. The analysis uses survey data of six European countries from the Enterprise Surveys carried out in 2018 and 2019 and their follow-up survey during the COVID-19 crisis in 2020. Overall, the results indicate that companies that had already previously (before the crisis) reported perceived difficulties with access to financial resources have been more severely constrained during the pandemic. Moreover, companies that adopt innovative approaches during the pandemic perform better. Finally, digitalization strategies are not significantly related to entrepreneurial success. Our analysis reveals the importance of strategic planning of companies and the provision of an environment conducive to innovation by policymakers.

Suggested Citation

  • Florian Horky & Nicola Tretter & Jarko Fidrmuc, 2021. "Are the pandemic and innovation twins? Perceived financial obstacles, innovations, and entrepreneurial success," Economic Research Guardian, Weissberg Publishing, vol. 11(2), pages 236-254, December.
    • Handle: RePEc:wei:journl:v:11:y:2021:i:2:p:236-254
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    References listed on IDEAS

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    Cited by:

    1. Bakari, Sayef, 2022. "The Impact of Digitalization and Patent on Economic Growth in Romania," MPRA Paper 113951, University Library of Munich, Germany.

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    More about this item

    Keywords

    Pandemic crisis; Innovation; Digitalization; COVID-19; SMEs;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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