Effects of Foreign Ownership On Innovation Activities: Empirical Evidence for Twelve European Countries

In the present study we investigate the relationship between foreign ownership and innovation activities using the firmlevel data of the third Community Innovation Survey (CIS) covering twelve European countries. Probit estimates based on 28,000 firms' observations show that foreign-owned firms are more innovative than domestic firms, particularly in the New EU Member States. However, results from the Blinder-Oaxaca decomposition of the differences in the percentage of innovating firms between foreign-owned and domestic firms reveals that the differences are mainly due to the different firm characteristics rather than the differences in coefficients. In particular, the dominance of foreign-owned firms in the largest firm size group is the main factor contributing to the gap in the percentage of innovators between foreign-owned firms and domestic firms. Furthermore, using the fractional logit model, we find that in the New EU Member states, foreign ownership has a positive and significant impact on the share of market novelties as well as on the share of new products in turnover. In this case, the results from the Blinder-Oaxaca decomposition analysis indicate that the ownership difference in the share of innovative sales is not due to the differences in the observed firms' characteristics.

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The effects of EU R&I funding on SME innovation and business performance in new EU member states: Firm-level evidence

Economic Annals ◽

10.2298/eka2128007c ◽

2021 ◽

Vol 66 (228) ◽

pp. 7-41

Author(s):

Nevenka Cuckovic ◽

Valentina Vuckovic

Keyword(s):

Business Performance ◽

Community Innovation Survey ◽

Firm Level ◽

Member States ◽

Effect Analysis ◽

Eu Member States ◽

Research And Innovation ◽

Innovation Activities ◽

Start Ups ◽

New Eu Member States

SMEs are the most dynamic and vibrant part of the enterprise sector in terms of start-ups and new jobs, and a significant share of the EU?s total innovation activities take place within them. This paper uses the Community Innovation Survey (CIS) 2014 and eCORDA data to analyse whether SME participation in EU research and innovation (R&I) funding programmes has increased their innovation activities and business performance. To achieve this, we empirically test whether SMEs that received EU funds recorded an improvement in their innovation and economic performance. This is measured by research and development (R&D) expenditure, product innovation, turnover, and employment. The paper focusses particularly on new EU member countries and among them to those from Central and Eastern Europe (CEE). It explores the theoretical and methodological backgrounds that guided us in these analyses and performs treatment effect analysis at firm level, using CIS CDROM data that we received on request from Eurostat. The obtained results indicate that EU R&I funding is beneficial to the innovation activities of SME recipients, and to their overall business performance. It also assists new EU member states in the process of ?catching up? to the growth levels of more established EU economies.

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Poverty Transitions and Trigger Events across EU Groups of Countries: Evidence from EU-SILC

Journal of Social Policy ◽

10.1017/s0047279414000270 ◽

2014 ◽

Vol 43 (4) ◽

pp. 745-772 ◽

Cited By ~ 6

Author(s):

VERONICA POLIN ◽

MICHELE RAITANO

Keyword(s):

Longitudinal Data ◽

European Countries ◽

Income Poverty ◽

Welfare Regime ◽

Member States ◽

Household Characteristics ◽

Eu Member States ◽

Poverty Transitions ◽

New Eu Member States ◽

Trigger Events

AbstractThe dynamics of income poverty in European countries have been extensively analysed using the ECHP dataset, run from 1994 to 2001 in the ‘old’ fifteen member states. Using EU-SILC longitudinal data, the purpose of this paper is to update this type of analysis to 2006 by including the ‘new’ EU member states and focusing on poverty mobility. The demographic and economic events associated with households falling into or exiting poverty are analysed through both descriptive analyses and logit regressions. The analysis compares six groups of countries clustered according to welfare regime typologies. The results reveal that most poverty transitions are associated with economic events, but the entry rates after the occurrence of demographic events are also crucial. With respect to poverty entry rates, differences among groups of countries are consistent with their welfare regime typologies, but a less clear ranking among them emerges when considering poverty exit rates and when regressions are estimated while controlling for household characteristics.

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