Title: What factors influence the innovation activity of companies? - The case of Hungary

Authors: János Kiss; Annamaria Kazai Ónodi

Addresses: Institute of Operations and Decision Sciences, Corvinus University of Budapest, Hungary ' Institute of Entrepreneurship and Innovation, Corvinus University of Budapest, Hungary

Abstract: Our research focuses on the factors influencing the innovation activity of companies. The study is based on a Hungarian sample of 209 large and midsized companies. In addition to simple statistical methods, we use Heckit and probit regression analyses. We conclude that foreign firms do not significantly differ from Hungarian firms in terms of innovation activity and performance. High innovation costs, shortages of skilled labour, and weak innovation management constrain innovation the most. Corruption and the shadow economy hinder companies from innovating. Exporting companies spend more on innovation than companies focusing on domestic markets. Managerial competencies influence the firm's propensity to innovate. The main limitation of this study is the relatively small cross-sectional sample.

Keywords: innovation; new products; innovation performance; innovation barriers; corruption; shadow economy; foreign-owned company; Heckman regression model; probit regression model; Hungary.

DOI: 10.1504/IJTLID.2023.132866

International Journal of Technological Learning, Innovation and Development, 2023 Vol.15 No.1, pp.28 - 47

Received: 30 Apr 2022
Accepted: 21 Dec 2022
Published online: 13 Aug 2023 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article