Vol. 8 No. 4 (2020)
December 2020

Articles

Innovation strategies of manufacturing companies during expansions and slowdowns

Published 2020-08-31

  • Jagoda Kaszowska-Mojsa

Jagoda Kaszowska-Mojsa
Institute of Economics, Polish Academy of Sciences

Abstract

Objective: The aim of the article is to analyse the differentiation in the innovation strategies of the manufacturing companies during economic expansions and slowdowns.

Research Design & Methods: The random-effect logistic regression models were used to examine the differentiation of a firm’s innovation strategies and the probability of innovating in different phases of the business cycle. I used the proprietary Innovation Survey (PNT-02) data, which overlap with the Community Innovation Survey (CIS).

Findings: The analyses suggest that the likelihood of implementing innovation changes with the deterioration of macroeconomic conditions. There are groups of manufacturing firms in Poland whose innovation activities are procyclical and countercyclical.

Implications & Recommendations: My analyses will help to understand the innovation strategies of the firms. This, in turn, should help to direct public support where it can be used more effectively. The recommendations will be relevant for the National Innovation System in Poland, as they should counterbalance the procyclical impact of a slowdown on a firm’s innovation spending and cooperation in innovation activities.

Contribution & Value Added: Previously, the PNT-02 data for 2004-2006 and 2006-2008 were used in the FP6 project on micro determinants of growth (MICRODYN) to identify the barriers to the innovation of the firms and the factors that decreased the probability of firms’ innovativeness. This study indicated a differentiation of the competences between firms that implemented innovation in two periods compared to those that only did so in one period. However, the previous study did not cover a period of an economic slowdown. Therefore, this study will contribute to the state-of-the-art literature by extending the analyses to this period.

       

Keywords

innovation strategies; manufacturing sector; CIS survey; slowdown; procyclicality; countercyclicality

(PDF) Save

References

  1. Antonioli, D., Bianchi, A., Mazzanti, M., Montresor, S, & Pini, P. (2013). Innovation Strategies and Economic Crisis: Evidence from Firm-level Italian Data. Economia Politica, 30(1), 33-68. https://doi.org/ 10.1428/73099
  2. Archibugi, D., & Filippetti, A. (2011). Is the Economic Crisis Impairing Convergence in Innovation Performance across Europe? JCMS-Journal of Common Market Studies, 49(6), 1153-1182. https://doi.org/10.1111/j.1468-5965.2011.02191.x
  3. Archibugi, D., & Filippetti, A. (2012). Innovation and economic crisis. Lessons and prospects from the economic downturn. Routledge studies on global competition. Abigdon, England: Francis & Taylor group.
  4. Archibugi, D., Filippetti, A., & Frenz, M. (2012). The effect of the financial crisis on patterns of innovation investment in Europe: an analysis of Innobarometer. Birkbeck University of London Presentation.
  5. Archibugi, D., Filippetti, A., & Frenz, M. (2013). The impact of the Economic Crisis on Innovation: Evidence from Europe. Technological Forecasting and Social Change, 80(7), 1247-1260. https://doi.org/10.1016/j.techfore.2013.05.005
  6. Archibugi, D., Filippetti, A., & Frenz, M. (2013a). Who Innovates Out of the Crisis?. The European Business Review, (n.d.), 58-60.
  7. Archibugi, D., Filippetti, A., & Frenz, M. (2013b). Economic crisis and innovation: Is destruction prevailing over accumulation? Research Policy, 42(2), 303-314. https://doi.org/10.1016/j.respol.2012.07.002
  8. Cameron, C., & Trivedi, P. (2009). Microeconometrics using STATA. College Station, Texas, US: Stata Press.
  9. Castellaci, F. (2008). Technological paradigms, regimes and trajectorie: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation. Research Policy, 37, 978-994.
  10. Correa, P., & Iotty, M. (2010). Will the Crisis Affect the Economic Recovery in Eastern European Countries? Evidence from Firm Level Data. The World Bank Policy Working Paper 5278.
  11. Damanpour, F., & Wischnevsky, J.D. (2006). Research on innovation in organizations: Distinguish-ing innovation-generating from innovation-adopting organizations. Journal of Engineering and Technology Management, 23(4), 269-291. https://doi.org/10.1016/j.jengtecman.2006.08.002
  12. de Jong, J.P.J., & Marsili, O. (2006). The fruit flies of innovations: A taxonomy of innovative small firms. Research Policy, 35, 213-229.
  13. Frenz, M., & Lambert, R. (2010). Connected Innovation: An International Comparative Study that Identifies Mixed Modes of Innovation, Paper to be presented at the Summer Conference 2010 on Opening Up Innovation: Strategy, Organization and Technology at Imperial College London Business School, June 16-18.
  14. Giebel, M., & Kraft, K. (2017). External financing constraints and firm’s innovative activities during the financial crisis. ZEW Discussion Paper, 17-064, 1-27.
  15. Hardy, B., & Sever, C. (2020). Financial crisis and innovation. BIS Working Paper, 846, 1-49.
  16. Holl, A., & Roma, R. (2016). Persistence of innovative activities in times of crisis: the case of Basque Country. European Planning Studies, 24(10), 1863-1883.
  17. Innovation in the crisis and beyond. (2012). OECD Science, Technology and Industry Outlook. Paris, France.
  18. Jensen, M.B., Johnson, R, Lorenz, E., & Lundvall, B.A. (2007). Forms of Knowledge and Modes of Innovation. Research Policy, 36(5), 680-693.
  19. Leiponen, A., & Drejer, I. (2007). What exactly are technological regimes? Intra-industry heteroge-neity in the organization innovation activities. Research Policy, 36(8), 1221-1238.
  20. Llerene, P., & Oltra, V. (2002). Diversity of Innovative Strategy as a Source of Technological Per-formance. Structural Change and Economic Dynamics, 13(2), 179-201.
  21. Lenart, Ł., & Pipień, M. (2013a) Almost Periodically Correlated Time Series in Business
  22. Fluctuations Analysis: the case of Poland. Acta Physica Polonica A, 123(3), 70-86. https://doi.org/10.2139/ssrn.2006343
  23. Mintzberg, H. (1988). Generic strategies: Towards a comprehensive framework. Advance in Stra-tegic Management, 5, 1-16.
  24. Oslo Manual. (2005). The Measurement of Scientific and Technological Activities. Guidelines for Collecting and Interpreting Innovation Data. OECD and Eurostat Joint Publication. Paris, France.
  25. Pavitt, K. (1984). Sectoral patterns of technical change: towards a taxonomy and a theory. Re-search Policy, 13(6), 343-373.
  26. Peneder, M. (2003). Industry Classifications: Aim, Scope and techniques. Journal of Industry, Com-petition and Trade, 3, 109-12.
  27. Pipień, M., Wdowiński, P., & Kaszowska, J. (2018). Identyfikacja cech cyklu finansowego i analiza jego synchronizacji z cyklem koniunkturalnym. Materiały i Studia, 332, 4-67.
  28. Som, O., Dreher, C., & Maloca, S. (2010), Innovation Patterns of Non-R&D Performing Firms in the German Manufacturing Industries. An Evolutionary Approach to Heterogeneity in Firms’ Inno-vation Strategy, paper for the 13th Conference of the International Schumpeter Society, Aal-borg University, Denmark, June 21-24.
  29. Srholec, M., & Versagen, B. (2008). The Voyage of the Beagle in Innovation System Land. Explora-tions on Sectors, Innovation, Heterogeneity and Selection. Centre for Technology, Innovation and Culture, University of Oslo
  30. Wziątek-Kubiak, A., & Pęczkowski, M. (2013). Źródła i bariery ciągłości wdrażania innowacji przez polskie przedsiębiorstwa, In J. Sokołowski & M. Rękas (Eds.), Ekonomia (1st ed., pp. 872-883). Wrocław, Poland: Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu 305.
  31. Wziątek-Kubiak, A., Balcerowicz, E., & Pęczkowski, M. (2013a). Differentiation of Innovation Strat-egy of Manufacturing Firms in the New Member States. Cluster Analysis on Firm Level Data. Argumenta Oeconomica, 2(31), 117-149.

Downloads

Download data is not yet available.