Innovation investment decisions: are post(transition) economies different from the rest of the EU?
Ljiljana Božić and
Valerija Botric ()
Eastern Journal of European Studies, 2017, vol. 8(2), 25-43
The slow progress of innovation in transition economies is not related just to firms’ decision to invest in innovation activities. Rather, it is worth distinguishing between their decision to increase investment, reduce it, keep their investments at the same level or not invest in innovation activities at all. To understand these decisions we develop and estimate models for post-transition and developed European countries employing multinomial probit. The analysis relies on responses of 2580 firms from 11 post-transition countries and 4058 firms from 18 European countries collected by the Flash Eurobarometer 433 - Innobarometer 2016 survey. We have established that the firms’ decision making process in general is mostly related to previous innovation investment experience. In transition countries, the higher the percent of turnover invested in innovation, the lower the probability of an increase in the future. In the firms operating in developed economies, lower turnover from new products is related to the decision to decrease innovation investment in the future.
Keywords: innovation investment; (post)transition economies; developed economies; multinomial probit (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:jes:journl:y:2017:v:8:p:25-43
Access Statistics for this article
More articles in Eastern Journal of European Studies from Centre for European Studies, Alexandru Ioan Cuza University Contact information at EDIRC.
Bibliographic data for series maintained by Alupului Ciprian ().