Abstract
The present study analyses the effects of property transformation on innovation and entrepreneurship in the forestry sector of Slovakia. The analysis follows the theories of property rights, property transaction costs and innovation systems. The study is based on information collected by the Regional Project Centre INNOFORCE of the European Forest Institute in three developed market economies (Austria, Germany, Italy) and four transition economies (Czech Republic, Hungary, Slovakia, Slovenia) with particular attention to Slovakia. Forest holdings represented the basic population of the survey, and their owners or managers were the information source. Data were collected in two subsequent enquiries in 2002 and 2003. The first one was implemented in all seven countries; the second took place in Slovakia only. The ownership type appeared to be important for the innovation activity of forest holdings. The highest innovation activity was reported by state-owned enterprises, intermediary in municipal holdings, and the lowest in holdings owned by land associations and individuals. This empirical observation contradict the hypothesis based on the theory of property rights, according to which the highest entrepreneurial and innovation activity could be observed in private holdings, medium in the collective and low in the state ownership. Instead, innovation correlated positively with the holding size and scale of operation in forest enterprises. In spite of the correspondence between the competences and responsibilities in individually and group-owned forest holdings, their entrepreneurial activity appeared to be limited by high transaction costs of property restitution, maintenance and management. Increasing their motivation to generate economic outputs would require easier property restitution, strict law enforcement, reducing uncompensated restriction on forest use, cooperation of owners, and the support of the professional advisory. The results concerning state-owned and municipal forest holdings indicate their good capacity for innovation, providing that there was (i) a pressure of their owner(s) towards increasing economic efficiency and (ii) technological and economic know-how available. While the correspondence between competences and responsibilities is lower in these two ownership categories, also the transaction costs of the establishment and management of property have been lower in the course of transformation.
Published Version
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