The Effects of Demand-Side Policy on Firm Innovation: The Mediating Role of R&D Activities
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F23%3A39920894" target="_blank" >RIV/00216275:25410/23:39920894 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
The Effects of Demand-Side Policy on Firm Innovation: The Mediating Role of R&D Activities
Original language description
Today, innovation is seen as the engine of economic growth. As a result, governments foster innovation activities in both the public and private sectors by using policy tools such as measures, regulations, and incentives. There are two main approaches in government innovation policy: supply-side policy and demand-side policy. Supply-side policy instruments primarily stimulate technological development and diffuse innovation capabilities. On the other hand, demand-side policy supports specific demand and minimizes technological and trade uncertainty at all stages of production. Moreover, a demand-driven procurement policy is one of the main drivers of high-tech industries. At the same time, in line with the growing importance of the knowledge economy and societal concepts, knowledge or technology has become the major determinant of innovation. In this way, companies are encouraged to undertake research and development activities in order to create innovation and advance their technologies. Moreover, the government’s support for investing in research and development (R&D) activities has become an effective solution for the firm’s innovation outputs. These R&D activities are of particular importance in transition and catch-up economies such as the Czech Republic. Therefore, this article aims to analyze the impact of demand-driven policy on business innovation through R&D activities in the Czech Republic. Data from the Community Innovation Survey and partial least squares structural equation modelling are used to achieve the purpose of this article. Our findings show that demand-driven policy (procurement for innovation) significantly and positively affects firm product and process innovation through R&D activities. The findings of our research also have practical implications for firms and policymakers in the Czech Republic. These results could also apply to Central and Eastern Europe, where we can observe similar characteristics of firms, for instance, because of their innovation performance.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50204 - Business and management
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of the 24th European Conference on Knowledge Management
ISBN
978-1-914587-73-3
ISSN
2048-8963
e-ISSN
2048-8971
Number of pages
8
Pages from-to
1211-1218
Publisher name
Academic Conferences International Limited
Place of publication
Sonning Common
Event location
Lisabon
Event date
Sep 7, 2023
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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