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Innovation procurement as capability-building: Evaluating innovation policies in eight Central and Eastern European countries

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  • Stojčić, Nebojša
  • Srhoj, Stjepan
  • Coad, Alex

Abstract

After decades of impressive growth, the new member states of the European Union are once again in transition, but this time from imitation to innovation-driven competitiveness. This paper evaluates the relationship between both public funding and public procurement for innovation (PPI) and firm-level innovation output and outcome additionality, in eight Central and Eastern European countries. Matching estimates on a sample of 41,623 firms suggest that PPI has a large effect on innovation and output, and the highest additionality is sometimes achieved when firms receive both financial support and innovation-oriented public procurement. We argue that policy-makers aiming to strengthen indigenous innovation capabilities should place stronger emphasis on PPI.

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  • Stojčić, Nebojša & Srhoj, Stjepan & Coad, Alex, 2020. "Innovation procurement as capability-building: Evaluating innovation policies in eight Central and Eastern European countries," European Economic Review, Elsevier, vol. 121(C).
  • Handle: RePEc:eee:eecrev:v:121:y:2020:i:c:s0014292119301904
    DOI: 10.1016/j.euroecorev.2019.103330
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    13. Iraj Hashi & Mehtap Hisarciklilar & Slavo Radošević & Nebojša Stojčić & Nina Vujanović, 2022. "FDI Spillover Effects on Innovation Activities of Knowledge-using and Knowledge-creating Firms: Evidence from an Emerging Economy," wiiw Working Papers 213, The Vienna Institute for International Economic Studies, wiiw.
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    16. Audretsch, David B. & Belitski, Maksim, 2020. "The role of R&D and knowledge spillovers in innovation and productivity," European Economic Review, Elsevier, vol. 123(C).
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    18. S.I. Kubiv & N.S. Bobro & G.S. Lopushnyak & Y.I. Lenher & A. Kozhyna, 2020. "Innovative Potential in European Countries: Analytical and Legal Aspects," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 250-264.
    19. Stojcic, Nebojsa & Pylak, Korneliusz & Jurlina Alibegovic, Dubravka, 2022. "Spatial impact of entrepreneurial zones: firm, city, and inter city evidence," MPRA Paper 112395, University Library of Munich, Germany.
    20. Baday Yıldız, Ezgi & Dabić, Marina & Stojčić, Nebojša & Dindaroğlu, Yeşim & Temel, Serdal, 2021. "Scrutinizing innovation performance of family firms in efficiency-driven environment," Journal of Business Research, Elsevier, vol. 129(C), pages 260-270.
    21. Meda Andrijauskiene & Daiva Dumciuviene & Jovita Vasauskaite, 2021. "Redeveloping the National Innovative Capacity Framework: European Union Perspective," Economies, MDPI, vol. 9(4), pages 1-30, December.
    22. Krieger, Bastian & Zipperer, Vera, 2021. "Does green public procurement trigger environmental innovations?," ZEW Discussion Papers 21-071, ZEW - Leibniz Centre for European Economic Research.
    23. Švarc, Jadranka & Dabić, Marina, 2021. "Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries," Technology in Society, Elsevier, vol. 67(C).

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    Keywords

    Public funding for innovation; Public procurement for innovation; Additionality; Evaluation; Central and Eastern European countries;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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