The Effects of Demand-Side Policy on Firm Innovation: The Mediating Role of R&D Activities

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

The Effects of Demand-Side Policy on Firm Innovation: The Mediating Role of R&D Activities

Popis výsledku v původním jazyce

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&amp;D) activities has become an effective solution for the firm’s innovation outputs. These R&amp;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&amp;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&amp;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.

Název v anglickém jazyce

The Effects of Demand-Side Policy on Firm Innovation: The Mediating Role of R&D Activities

Popis výsledku anglicky

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&amp;D) activities has become an effective solution for the firm’s innovation outputs. These R&amp;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&amp;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&amp;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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50204 - Business and management

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2023

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of the 24th European Conference on Knowledge Management

ISBN

978-1-914587-73-3

ISSN

2048-8963

e-ISSN

2048-8971

Počet stran výsledku

8

Strana od-do

1211-1218

Název nakladatele

Academic Conferences International Limited

Místo vydání

Sonning Common

Místo konání akce

Lisabon

Datum konání akce

7. 9. 2023

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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