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R&D Activities as a Growth Factor of Foreign-Owned SMEs in Croatia

Author

Listed:
  • Zoran Aralica

    (The Institute of Economics, Zagreb, Croatia)

  • Domagoj Racic

    (Center for Strategy and Development, Zagreb, Croatia)

  • Denis Redzepagic

    (The Institute of Economics, Zagreb, Croatia)

Abstract

The aim of this paper is to explore the role of R&D activity as a factor of innovation and growth in foreign-owned SMEs in Croatia. In this paper, we try to confirm the hypothesis that there is a significant statistical difference (measured by the chi-square test) between high-growth foreign-owned SMEs and low-growth foreign-owned SMEs with regard to R&D activities. R&D activities are measured by annual expenditures on R&D and by the existence of R&D collaboration with external partners. In addition, the role of the firm as a source of technological knowledge for R&D activities and innovation for its partners is measured. The growth performance (i.e. increase of total revenues and number of employees) of foreign-owned SMEs in Croatia cannot be explained by R&D activities. However, a statistical difference has been observed in the case of high-growth SMEs as knowledge sources for foreign competitors.

Suggested Citation

  • Zoran Aralica & Domagoj Racic & Denis Redzepagic, 2009. "R&D Activities as a Growth Factor of Foreign-Owned SMEs in Croatia," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 11(1), pages 73-93, April.
    • Handle: RePEc:iez:survey:ces-v11_1-2009_aralica-racic-redzepagic
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    References listed on IDEAS

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    Cited by:

    1. Olana Bojic, 2009. "ERAWATCH Country Reports 2009: Croatia - Analysis of Policy Mixes to Foster R&D Investment and to Contribute to the ERA," JRC Research Reports JRC53684, Joint Research Centre.
    2. Dejan Ravšelj & Aleksander Aristovnik, 2018. "The Impact of Private Research and Development Expenditures and Tax Incentives on Sustainable Corporate Growth in Selected OECD Countries," Sustainability, MDPI, vol. 10(7), pages 1-16, July.

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    More about this item

    Keywords

    small and medium-sized enterprises; R&D activities; Croatia;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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