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91. Does Government Support for Private Innovation Matter? Firm-Level Evidence from Turkey and Poland

Author:
Krzysztof Szczygielski, M. Teoman Pamukcu, Sinan Tandogan, and Wojciech Grabowski
Publication Date:
08-2013
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
The aim of the project is to analyze government support for innovation in a comparative perspective by first examining the main existing instruments of financial support for innovation in Turkey and Poland, and secondly to assess their effectiveness by applying recent econometric techniques to firm-level data for both countries obtained from the Community Innovation Survey (CIS). Comparing Turkey to Poland is both meaningful and promising from a policy-analysis point of view. Both countries are comparable in terms of levels of economic development and technological capabilities, i.e. the ability of their economies to create knowledge and exploit it commercially. Both have undergone deep market-oriented reforms in the last decades – Turkey since 1980, Poland since 1989 – resulting in a significant catching-up of their economies. However, as the possibilities for further growth based on structural change and eliminating obstacles to business.
Topic:
Economics, Government, Markets, and Innovation
Political Geography:
Europe, Turkey, Middle East, Poland, and Mediterranean

92. Private Sector Development in the South and East Mediterranean Region

Author:
Mehdi Safavi and Richard Woodward
Publication Date:
10-2012
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
This report is concerned with the analysis of privatization and private sector development for the eastern and southern Mediterranean countries partnered with the European Union and collectively known as MED-11. Noting that the analysis applies to the situation prior to the dislocations of the Arab Spring, we review the shift in the relative shares of the public and private sectors in these countries, as well as the business climate affecting the development of the private sector, examine a number of cultural factors that may influence the development of the private sector, and discuss some alternative scenarios for future developments. In the last 20 years, efforts have been made in all countries of the MED-11 to encourage private sector development and, to a greater or lesser extent, privatization of stateowned assets. However, there is a great deal of differentiation among the countries in the group. In the MED-11, Israel has not only the most business-friendly policy environment but also the most developed private sector, accounting for almost 80% of employment. The other countries of the region can be divided into two groups: one, including Algeria, Libya, and Syria, where reforms promoting privatization and private sector development have been very limited, and the rest, in which they have been much more extensive (the Palestine Authority is, for obvious reasons, a rather special case). A generally poor business environment makes for a large informal sector in almost every country in the region; however, generally speaking, we do not find the cultural factors we examine to be hostile to private sector development. Optimistic, reference and pessimistic scenarios are discussed; which of these is realized in any particular MED-11 country will depend greatly on the direction of change following the events of 2011’s Arab Spring.
Topic:
Development, Privatization, Economy, Innovation, and Private Sector
Political Geography:
Europe and Mediterranean

93. Innovation Systems and Knowledge-Intensive Enterpreneurship: a Country Case Study of Poland

Author:
Elzbieta Wojnicka, Richard Woodward, and Wojciech Pander
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Center for Social and Economic Research - CASE
Abstract:
This study surveys the current state of affairs in Poland with regard to the development of knowledge-intensive entrepreneurship (KIE), or new firm creation in industries considered to be science-based or to use research and development (R&D) intensively. We place KIE in Poland in the larger institutional context, outlining the key features of the country’s National Innovation System, and then focus on KIE itself. Our findings are perhaps more optimistic than many previous studies of knowledge-based economy development in Poland. We observe significant progress due to Polish access to the European Union. The frequency with which universities are playing a significant role as partners for firms in the innovation process has increased significantly; moreover, we observe a significant degree of internationalization of innovation-related cooperation. Another optimistic development is that the level of activity of venture capitalists seems to be fairly high in Poland considering the relatively low degree of development of capital markets offering VC investors exit opportunities. Moreover, after almost two decades of decline in the share of R&D spending in GDP, there are signs that this is beginning to rise, and that businesses are beginning to spend more on R&D. While demand-side problems continue to be significant barriers for the development of KIE, due to the relatively low level of education and GDP per capita in the country, the trends here are optimistic, with high rates of economic growth and improvements in the level of education of younger generations. Significant improvement is still needed in the area of intellectual property protection.
Topic:
Development, Entrepreneurship, Innovation, and Knowledge Economy
Political Geography:
Europe and Poland

94. Innovation Strategies and Productivity in the Polish Services Sector in the light of CIS 2008

Author:
Krzysztof Szczygielski and Wojciech Grabowski
Publication Date:
12-2012
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
Industry - and firm-level research into both innovations and productivity has long been limited to manufacturing. With this paper, we aim to contribute to the stream of literature that aims at extending the scope of such investigations to the services industry. To this end we analyze the innovation strategies in several service sectors in Poland in 2008 and examine their relationship to productivity. Our results show that service firms differ considerably in their innovation strategies, but that most of those strategies lead to productivity gains.
Topic:
Development, Innovation, Private Sector, and Knowledge Economy
Political Geography:
Europe and Poland