Exploring Determinants of Innovation Capability in Manufacturing Companies Operating in Poland

Abstract

The innovation capability of a company is considered the determinant of its competitiveness in the long-term. Therefore, it is of increasing importance to understand the critical variable behind a firm’s innovation capability. The paper explores these issues and contributes to the research on the factors that drive a company’s innovation capability. The aim of the paper is to identify which factors determine the innovation capability of manufacturing enterprises operating in Poland. In the theoretical part, it provides an overview of recent contributions to the literature on a company’s innovation capability enhancers. The empirical contribution of the paper refers to recognising the relationship between the certain practices pursued by Polish manufacturing enterprises and their innovation capability measured by innovation output. Using a model for panel data, the study finds that that the factors driving innovation capability of manufacturing enterprises operating in Poland are the following: inter-organisational cooperation, hiring employees in research and development (R&D) activities as well as firms’ internal expenditures on R&D. The study is based on the data from publications of the Central Statistical Office of Poland, which contain information on the activities of manufacturing enterprises and reports presenting the results of research on the innovation capability of enterprises.