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Innovation behaviour of firms in a small open economy: the case of the Czech manufacturing industry

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  • Marek Vokoun

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Abstract

This paper describes the role of R&D and analyse its impact on productivity in the Czech economy in a CDM model. Four CIS waves (2001, 2003, 2006, and 2008) were used in the CDM model. The estimated low innovation input elasticity around 9 % describes the Czechs as poor innovators in the EU. This economy was a developing country until 2006 and we have observed a substantive FDI inflow since 1998. Multinationals have a higher sales share now and are an essential part of the economy. Multinationals engage less in innovation, but innovating MNEs spend more on R&D per employee and appropriate more from their innovated goods. The FDI inflow was a form of innovation wave. Innovation output is an important determinant for boosting productivity among SME’s. Public support had positive effect on innovation intensity; however, no additional effect on innovation output. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Marek Vokoun, 2016. "Innovation behaviour of firms in a small open economy: the case of the Czech manufacturing industry," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(1), pages 111-139, February.
  • Handle: RePEc:kap:empiri:v:43:y:2016:i:1:p:111-139
    DOI: 10.1007/s10663-015-9296-0
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    File URL: http://hdl.handle.net/10.1007/s10663-015-9296-0
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    Cited by:

    1. repec:gam:jsusta:v:10:y:2018:i:4:p:1064-:d:139410 is not listed on IDEAS
    2. repec:gam:jsusta:v:10:y:2018:i:5:p:1361-:d:143546 is not listed on IDEAS

    More about this item

    Keywords

    Innovation; Multinationals; SME; Transitional economy; Open economy; O33; L60; D24; O38;

    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
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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