A new perspective for European SMEs' innovative support analysis: Does non-financial support matter?

Most of the previous research focused on the effects of public support for SMEs' innovative activities dealt with the effects of financial incentives, while non-financial support was considered a kind of "black box". This research therefore aims to fill this gap by exploring the role non-financial support systems play in triggering SMEs' collaborations and innovativeness in Europe. We show that non-financial support (framework condition) significantly facilitates collaboration and innovation of European SMEs, by using partial least squares structural equation modelling (PLS-SEM) and 216 sampled datasets of the 27 EU countries from 2012 to 2020 European Innovation Scoreboard (EIS). Our expectation was confirmed about the SMEs' collaboration significant effects on their innovative activities, which subsequently translate into innovative outputs. We also found indirect significant effect of the non-financial support on SME's innovation output. This study serves several practical implications and contributes to the ongoing debate on the effects of non-financial support for cooperation and innovation activities of European SMEs.

Do R&D intensity and capacity utilisation matter for SMEs' innovations within the CEE region? Testing moderating roles of different ownership structures.

Existing innovation literature has assumed that the relationship between firms' R&D intensity and innovation take place without the interplay of other organizational factors. However, the reality differs, and research to date has shown that other factors affecting firms' innovation need to be considered. This is important especially in Central and Eastern Europe (CEE) countries, which are highly dependent on both internal and external R&D and are associated with an inability to use R&D resources effectively. This study therefore responds to calls for further analysis, especially within the CEE region, and focuses on the role of two factors affecting SMEs' innovativeness and their effects, which have been mixed so far. First, we investigate the effects of SMEs' R&D intensity and capacity utilisation on product innovation. Second, we reveal the moderating role of SMEs' different ownership structures (ownership concentration; private/public ownership; family/non-family ownership) in the relationship between R&D intensity and product innovation. We confirm that CEE SMEs' ownership concentration and private ownership moderate the relationship between R&D intensity and product innovation. In contrast, we reject our hypothesis expecting that family ownership of SMEs can significantly moderate the relationship between R&D intensity and product innovation. Interestingly, we also show that the relationship between capacity utilisation and innovation is non-linear (inverted U-shaped). This study makes a significant contribution in the form of analysis within the CEE region, whose innovation systems are seen to be weak, and it is therefore necessary to bring new knowledge and recommendations to managers and public policymakers.

The nexus between circular economy innovation, market competitiveness, and triple bottom lines efficiencies among SMEs: evidence from emerging economies.

Recently, the trend of circular economy innovation (CEI) drive SMEs to initiate more sustainable practices to attain market competitiveness but rare attention has been paid in emerging economies. Hence, this study plans to explore the impacts of CEI on the triple bottom lines (TBL) efficiencies in the light of market competitiveness among the production SMEs in emerging economies. The study complied data by using a survey-based technique in Pakistan, Malaysia, and China. With a sample of 306 for each segment, data were evaluated with PLS-SEM to clarify results. The findings reveal that CEI has positive significant effects on the market competitiveness and TBL efficiencies among the production SMEs in emerging economies. The findings also clarify that market competitiveness mediates the relationship between CEI and the TBL efficiencies. The findings elaborate the theoretical foundations for environmental-based production SMEs to formulate more sustainable strategies in the light of CEI to gain market competitiveness. It also clarifies the understandings of policy makers and environmental regulators by providing a novel precursor to frame the environment-based TBL guidelines for SMEs. It adds to the UN sustainability agenda by elevating the role of CEI as a novel domain among emerging economies grounded on the resource-based view theory.

Does being stricter mean doing better? Different effects of environmental policy stringency on quality of life, green innovation, and international cooperation.

Nowadays, when we are facing several strict regulations, the question arises - does higher strictness lead to the desired results? This study addresses the fact that less research attention has focused on the effects of environmental policy stringency (EPS) on perceived health expressing quality of life, and on green international cooperation. In addition, previous research has provided rather mixed results on the impact of EPS on green innovation. Therefore, we fill an interesting research gap and help better understand the relationship between market-based and non-market-based EPS, perceived health, green innovations, and green international cooperation in OECD (Organization for Economic Co-operation and Development) countries. Using three complementary databases provided by OECD, Eurostat, and the World Bank and the classical linear regression model, we confirm hypotheses that strong market-based EPS and green international cooperation have positive effects on perceived health. Surprisingly, contrary to the findings of prior research, we do not confirm the positive effects of market-based and non-market-based EPS on green international cooperation. This study contributes to the literature on the Porter hypothesis, technological collaborations in green technological development, and environmental innovation theory. In addition, this study provides several practical implications for policymakers across OECD countries.

The role of foreign technologies and R&D in innovation processes within catching-up CEE countries.

Prior research showed that there is a growing consensus among researchers, which point out a key role of external knowledge sources such as external R&D and technologies in enhancing firms´ innovation. However, firms´ from catching-up Central and Eastern European (CEE) countries have already shown in the past that their innovation models differ from those applied, for example, in Western Europe. This study therefore introduces a novel two-staged model combining artificial neural networks and random forests to reveal the importance of internal and external factors influencing firms´ innovation performance in the case of 3,361 firms from six catching-up CEE countries (Czech Republic, Slovakia, Poland, Estonia, Latvia and Lithuania), by using the World Banks´ Enterprise Survey data from 2019. We confirm the hypothesis that innovators in the catching-up CEE countries depend more on internal knowledge sources and, moreover, that participation in the firms groups represents an important factor of firms´ innovation. Surprisingly, we reject the hypothesis that foreign technologies are a crucial source of external knowledge. This study contributes to the theories of open innovation and absorptive capacity in the context of selected CEE countries and provides several practical implications for firms.