European Financial and Accounting Journal 2014, 9(1):62-84 | DOI: 10.18267/j.efaj.115

Determinants of European Firm's Innovation and the Role of Public Financial Support

Jan Huňady1, Marta Orviská2, Beata Šarkanová3
1 Ing. Ján Huňady, PhD. - Assistant Professor; Department of Finance and Accounting. Faculty of Economics, Matej Bel University, Tajovského 10, 975 90 Banská Bystrica Slovakia, .
2 prof. Ing. Marta Orviská, PhD. - Professor; Department of Finance and Accounting. Faculty of Economics, Matej Bel University, Tajovského 10, 975 90 Banská Bystrica Slovakia, .
3 Ing. Beata Šarkanová - PhD. Student; Department of Finance and Accounting. Faculty of Economics, Matej Bel University, Tajovského 10, 975 90 Banská Bystrica Slovakia, .

Innovation activities at firm-level are often significantly influenced by factors that determine the outcome of the innovation process. The primary aim of this paper is to study and empirically verify the role of several determinants that affect company innovations in the European Union. The dataset for the analysis comes from Flash Eurobarometer 394 survey carried out in early 2014 and covers issues related to innovation activities, commercialization of innovation and also public support. We summarize the answers on selected questions from the survey by country, and subsequently based on the dataset, we perform regression analysis. In line with our primary assumptions, our results suggest that R&D activities on firm-level and their support represent the key factors substantially responsible for innovations. The work emphasizes the importance of firm characteristics and substantial differences between different types of innovation. Public sector support of innovation is also crucial.

Keywords: Firm, Innovation, Public support, R&D activities
JEL classification: L25, O30, O31

Published: March 1, 2014  Show citation

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Huňady, J., Orviská, M., & Šarkanová, B. (2014). Determinants of European Firm's Innovation and the Role of Public Financial Support. European Financial and Accounting Journal, 9(1), 62-84. doi: 10.18267/j.efaj.115
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