Innovations and Entreprises Performance in Transition Countries, with Special Emphasis on Kosovo: CDM Model Approach

Gezim Jusufi, Donat Rexha and Besime Ziberi

Economic Studies journal, 2024, issue 2, 77-91

Abstract: The main aim of this study is to analyze the impact of innovation and enterprises performance in the transition countries with special emphasis in the case of Kosovo. The innovations play crucial impact on firm development especially for small and medium sized enterprises in countries in transition. This study uses primary data with specific sample thus the enterprises that operate in Kosovo in order to analyze the relationship between innovations and firm performance. This study was conducted within a six-month period, specifically January 2022 – June 2022. The research sample consists of 400 Kosovar enterprises. These enterprises are from different economic sectors, such as production, services, and in terms of size, 80% of them are SMEs. The study used the CDM (Crepon, Duguet and Mairesse) model which include fourth phase. The first phase of this model is about the tendencies of enterprises to carry out innovative activities, the second phase is about the enterprises that invested in research and development, the third stage of the model, the conversion of inputs into outputs is analyzed. At the end, the impact of innovation outputs on the performance of the analyzed enterprises is investigated. The study concludes that enterprises that export to the EU and the Western Balkans region are significant, so this positively affects the tendencies of these enterprises for innovative activities, whereas enterprises that are oriented only to the local market, do not present significance and even have a negative relationship with the enterprises' tendencies for innovations. A large part of the enterprises think that innovations have high costs and are even unaffordable therefore this represents a big obstacle for the development of innovations. The lack of qualified personnel, lack of knowledge about markets and technology represents a big obstacle for the development of innovations, and it even negatively affects the decisions of these enterprises about innovations.

JEL-codes: L25 L26 M20 (search for similar items in EconPapers)
Date: 2024
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