Innovativeness in energy companies in developing economies: Determinants, evaluation and comparative analysis using the example of Poland

Abstract

Energy and the energy transition associated with its operation requires the creation and implementation of innovations, without which effective changes in the energy balance and greenhouse gas emissions will not be possible. This is particularly important in emerging and developing economies, which are often unable to meet modern environmental requirements. Various approaches to assessing innovation are proposed in research and literature. Nevertheless, there is a lack of holistic methods (assessing both the potential and the results of innovation), based on publicly available data and taking into account the specificity of the sector. Therefore, the objective of this article is to develop a model for evaluating innovativeness (potential and resultant) of companies in the energy sector. Additional sub-goals are: (a) using the developed model to evaluate innovativeness of seven Polish energy companies; (b) conducting a comparative analysis in terms of resultant and potential innovation for seven Polish energy companies and (c) specifying recommendations for improving the innovativeness of the examined companies and the Polish energy sector operating in a developing economy. The proposed model is based on publicly available financial data and takes into account two areas: 1. Potential innovativeness, allowing to determine the scale and type of resources supporting the creation of innovation; and 2. Resultant innovativeness, including the actual effects of pro-innovation activities. The evaluation of innovativeness in the above dimensions was carried out in 2016–2021 for seven key energy companies listed on the Warsaw Stock Exchange and operating in the Polish energy market. The study found that the best innovativeness performance was achieved by multinationals and companies with a high share of renewable sources in installed capacity and in production. In addition, the identified low degree of involvement of state-owned companies in the energy transition is not conducive to improving innovativeness and strengthening innovativeness at the national level.