Product and process innovation patterns in Polish low and high technology systems

Abstract

Research background: While the Sectoral Innovation System (SSI) anticipates technology-related similarities in innovation patterns in the same sectors across countries, the distance to the frontier suggests that there are important differences with respect to the level of national technological development. Most contemporary analyses of sectoral innovation systems are focused on well-developed economies. In contrast, the evidence from developing countries including new EU members are scared and lack dynamics. Purpose of the article: The purpose of this paper is to identify and compare product and process innovation patterns in Polish low and high technology systems. The main assumption is that divergence and convergence in innovation patterns of low- and medium-low technology (LMT) and high technology (HT) systems evolve over time and are strongly influenced by the characteristics of firms, their linkages with other system participants, existing demand, and institutional conditions. Methods: According to the third edition of the Oslo Manual (OECD, 2005), we employ a harmonized questionnaire and methodology to collect unique micro data on innovation.  The survey concerns 5252 firms including 873 firms from HT sector. The scope of the research relates to product and process innovation at least new to the firm. Findings & value added: Our results show that although the intensity of product and process innovation is higher in HT system, both business support institutions and public financial instruments better support firms in LMT sectors. On the other hand, existing demand and market structure favor the emergence of new innovations at the firm level (imitations), but with more emphasis on LMT. The key source of innovation is suppliers, with foreign suppliers in HT and national ones in LMT. In contrast to leading economies, LMT plays a key role in long term economic growth in Poland.