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Innovation Propensity in Croatian Enterprises: Results of a Community Innovation Survey

Zoran Aralica, Račić Domagoj and Radić Dubravko
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Račić Domagoj: Centre for Strategy and Development Kranjčevićeva, 27a, HR - 10000 Zagreb
Radić Dubravko: University of Wuppertal Gaußstraße, 20, 42097 Wuppertal

South East European Journal of Economics and Business, 2008, vol. 3, issue 1, 77-88

Abstract: This paper assesses the determinants of innovation activities in Croatian enterprises and their implications for innovation policy. A Type-2 Tobit model is used for modelling the innovation behaviour of Croatian companies, based on the results of a Community Innovation Survey conducted for the period 2001-2003. This model identified the positive effects of conditions for enterprise growth (enterprise size and demand pull variable) and the integration of enterprises into international flows of capital and goods (through foreign direct investments) as well as R&D activities. These variables can be tackled through a more effective policy framework that should increase competitiveness within industries in order to stimulate the demand for innovation. The focus should be on fostering enterprise growth, attraction of FDI with strong spillover effects, and stimulating the export capability of enterprises. Only in such a context can the positive effects of engagement in R&D be maximised.

Keywords: Innovation activities; Community Innovation Survey; Croatia (search for similar items in EconPapers)
Date: 2008
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DOI: 10.2478/v10033-008-0008-6

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South East European Journal of Economics and Business is currently edited by Adnan Efendic, Vesna Babić-Hodović and Aziz Šunje

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