Kadri Männasoo (Tallinn University of Technology): Motives and obstacles for innovation: Firm-level evidence from Central and Eastern Europe

Kadri Männasoo (Tallinn University of Technology): Motives and obstacles for innovation: Firm-level evidence from Central and Eastern Europe

Abstract

This study seeks the motives, facilitators and obstacles for innovation encountered by Central and Eastern European firms in their struggle for moving up in value added ladder on international markets. The investigation considers that export and innovation are largely codetermined, whereas the exporting firms are more likely conducting substantial and internationally competitive innovation. Hence, the study controls for the factors selecting firms into export. The paper pays particular attention to credit constraints, which are crucial in enabling firms to invest into productivity enhancing activities such as innovation and R&D. The data come from Business Environment and Enterprise performance survey and cover the firms from Central and Eastern European countries.

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