Abstract
This study examines factors that increase resilience in innovation of Polish manufacturing firms in an unstable environment. Organizational resilience in innovation is the ability to continuously perform innovation in a turbulent environment and increase knowledge accumulation. In 2008–2012, Poland did not have crisis itself. Short-term slowdown of the economy was accompanied by a breakdown of innovation activities, with a medium-term effect. Based on the Polish Community Innovation Survey panel data for two periods: the innovation crisis (2008–2010), and the innovation pessimism period (2010–2012), this study shows which innovative resources change the probability of innovation continuity in the second period. In our probit model, we explore 42 factors of innovations. We found that financing, R&D and marketing increased the probability of continuity of innovation, but the influence of financing was the strongest. Persistence in innovation in turbulent times hence requires a change in the structure of innovation resources used. Due to the fact that public support on innovation did not increase the likelihood of the continuity of the innovation, a policy change is required. Reliability of our estimation is confirmed by accuracy of prediction of firms, which was 78.2%.
Highlights
Empirical literature on persistence in innovation (Latham and Le Bas 2006; Le Bas et al 2011; Crespi and Scellato 2015, for a review) underlines the positive relationship between past, present and future innovation
We address the following: Which innovation capacities were restructured to smooth impact of external shock on innovation process and were the basis for resilience in innovation? Why innovation activities of some Polish firms handle external shock better than others do, and continued the innovation process?
We identify innovation drivers that increased the likelihood of introducing innovation during the crisis and innovative pessimism, and the strength of innovation resilience of Polish companies
Summary
Empirical literature on persistence in innovation (Latham and Le Bas 2006; Le Bas et al 2011; Crespi and Scellato 2015, for a review) underlines the positive relationship between past, present and future innovation. The basis of innovation is the continuous knowledge accumulation. As long as the firm moves forward with its innovation activities, persistence in innovation stimulates the learning process, knowledge accumulation, and development. Some literature challenges linearity of persistence in innovation and shows its heterogeneity across firms, sectors and over time. An evolutionary perspective underlines the impact of evolution in environment on innovation process. These changes are not the same as turbulence, unexpected shock and their effects can be different. Drastic changes due to turbulence speed up the selection of firms but can have different elements and effects. We argue that effect of shocks on innovation process is theoretically ambiguous
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