DIVERSIFICATION OF ENTERPRISE INNOVATION ACTIVITY LEVEL VS. GROSS DOMESTIC PRODUCT LEVEL PER CAPITA IN POLISH REGIONS

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1 The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 DIVERSIFICATION OF ENTERPRISE INNOVATION ACTIVITY LEVEL VS. GROSS DOMESTIC PRODUCT LEVEL PER CAPITA IN POLISH REGIONS Elżbieta Sobczak Dariusz Głuszczuk Abstract The research of iovatio activities i Polish regios was carried out takig ito accout both the scale of expediture icurred by eterprises (iput idicators) ad the achieved results i the form of e.g. icome eared for sellig iovatio products (output idicators). The purpose of the study is to idetify the diversificatio of iovatio activity level, as well as the aalysis ad assessmet of chages over time. The assessmet also covered mutual relatioships occurrig betwee the level of iovatio activities ad GDP per capita i Polish regios. The method of multivariate comparative aalysis with particular emphasis o aggregate measures of developmet ad ecoometric methods were applied i empirical studies. The research covered 16 Polish regios i the years 26 ad 214. Key words: iovatio activities, aggregate measures of developmet, Polish regios JEL Code: O3, O18, C4 Itroductio Smart developmet represets oe of the priorities of Europe 22 strategy, which focus o the developmet of kowledge-based ecoomy ad iovatio. Supportig iovatio orieted activities also remais oe of the mai goals of Polish ecoomic policy ad is cosidered the determiat of cotemporary socio-ecoomic developmet. Iovatio is approached as the drivig force of future growth, therefore oe of the crucial strategic objectives is to provide icetives for iovatio activities at both atioal ad regioal level (Bishop, 28). Iovatio is aalysed as the developmet factor i may moder theories of regioal growth, e.g. productio cycle (Grosse, 22), flexible productio (Storper, 1997), ew growth 1675

2 The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 theory, ew ecoomic geography (Marti ad Suley, 1996), a primary product (Adrews, 1953), territorial productio systems ad a learig regio (Florida, 1995), (Głuszczuk, 215). The Oslo Maual defies iovatio activities as all scietific, techical, orgaizatioal, fiacial ad commercial steps which actually lead, or are iteded to lead to the implemetatio of iovatios (OECD/Europea Commuities, 25), (Echeverria, 28). Iovatio activities ca be approached based o the aspect of expediture ad their effects. It results i distiguishig two types of idicators for iovatio activities i eterprises: iput, referrig to all types of spedig covered i relatio to carryig out iovatio projects ad output, idetifyig iovatio compaies based o their results achieved from sellig iovatio products (Shypulia, 215), (Teece, 21). Iovatio activity is ot evely distributed, therefore the preseted study attempts to idetify the diversity of Polish regios i terms of iovatio activities performed by eterprises ad the quatificatio of impacts exerted by iovatig eterprises o the regioal ecoomic potetial measured by GDP per capita. 1 Iformatio backgroud ad research methodology The statistical iformatio, idispesable i idetifyig ad quatifyig eterprise iovatio activity level ad its impact o GDP per capita, i the cross-sectio of Polish NUTS 2 regios, were collected from the Local Data Bak (LDB), the largest Polish database about iovatios, ad also from the Eurostat databases. The aalysis covered 16 Polish NUTS 2 regios. The period of research refers to the years 26 ad 214. The empirical aalysis was coducted i accordace with the followig research procedure stages: 1. The selectio of idicators describig iovatio activities of eterprises. 2. Liear orderig of NUTS 2 regios i terms of iput, output ad total iovatio activity level i eterprises. 3. The assessmet of iput, output ad total eterprise iovatio level diversificatio i Polish regios usig basic descriptive parameters i the years 26 ad The classificatio of Polish NUTS 2 regios i terms of total eterprise iovatio activity level i the years 26 ad The idetificatio of total iovatio activity level impact o GDP per capita i the years 26 ad 214 usig regressio aalysis. 1676

3 The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 The followig idicators were applied i the assessmet of iput eterprise iovatio activity level i Polish regios: X 1 share of expediture o iovatios i eterprises i domestic expediture (%), X 2 expediture o iovatios i eterprises per oe professioally active perso (PLN), X 3 eterprises which icurred expediture o iovatios (idustrial sector) (%), X 4 eterprises which icurred expediture o iovatios (service sector) (%). The idetificatio of output iovatio activity level i eterprises was coducted usig the below preseted idicators: X 5 sold productio share of ew/sigificatly improved products i idustrial eterprises i the total value of sold goods (%), X 6 average share of iovatig eterprises i the total umber of eterprises (%), X 7 share of et sales icome o products maufactured by high ad mid-high tech eterprises (%). Total iovatio activities carried out by eterprises was idetified based o X 1 X 7 idicators. Zero uitarizatio method (Kukuła, 2) was applied for the ormalizatio of iovatio activity idetifiers. Due to the fact that all idetified iovatio factors play the role of stimulats, the ormalizatio formula takes the followig form: z ij i x ij max x mi x ij i i ij mi x ij (1) z ij ormalized value of j-th idicator i i-th object-regio, x ij value of j- th idicator i i-th object-regio. Average stadardized sums method was applied as the fuctio aggregatig ormalized values of diagostic characteristics: SMk 1 m z ij m j 1 m the umber of idicators describig a complex pheomeo, = 1, 2,, N object-regio umber, k type of iovatio activity (iput,output, AI ), where: (2) SMiput, SMoutput, SMAI the respective aggregate measures of iput, output ad total eterprise iovatio activity level. The idetifies of eterprise iovatio activity level, ormalized usig zero uitarizatio method, take values i [, 1] iterval, therefore aggregate measures for the particular types of iovatio activities are characterized by the followig value: 1677

4 The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 SMiput, SMoutput, SMAI [,1] (3) The divisio of Polish regios ito groups, characterized by differet total eterprise iovatio activity is suggested by specifyig the followig itervals of aggregate measure values: group I regios characterized by the low level of total eterprise iovatio activity: SMAI 1 mi { SMAI} R (4) 3 group II regios characterized by the average level of total eterprise iovatio activity: mi { SMAI } 1 2 R SMAI mi { SMAI} R (5) 3 3 group III regios characterized by the high level of total eterprise iovatio activity: 2 mi { SMAI } R SMAI 1 (6) 3 where: R aggregate value rage measurig the developmet of a complex pheomeo. The assessmet of total eterprise iovatio activity level o GDP per capita was coducted usig descriptive ecoometric models with oe explaatory variable. Heuristic method was used to idetify the aalytical form of ecoometric models. The best aalytical from of the model, from the perspective of model adjustmet to empirical data (maximum value of R 2 coefficiet of determiatio) was selected amog the followig fuctios: liear, multivariate, power, expoetial ad logarithmic oe. 2 Empirical research results Figure 1 presets liear orderig of Polish regios i the years 26 ad 214 i terms of iput, output ad total iovatio activity of eterprises. The regios were ordered by the decreasig values of particular aggregate measures i 214. As it ca be observed, by far the highest level of iput iovatio activity, i both aalysed periods, was recorded i Mazowieckie regio, to be followed by Śląskie regio. Mazowieckie regio, i both studied years, had the highest values of iput idicators: share of expediture o iovatio activities i eterprises agaist domestic expediture (38,9% i 26 ad 33,3% i 214) ad expediture o iovatio activities i eterprises per oe professioally active perso (about PLN 464 i 26 ad PLN 4436 i 214). Śląskie regio was characterized by the relatively high values of all iput iovatio activities. 1678

5 The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 Fig. 1: Liear orderig of aggregate measure values of iput (SMiput), output (Smoutput), total (SMAI) eterprise iovatio activity levels,8 1,6,4, ,9,4 -, ,8,6,4, Source: authors compilatio based o LDB ad Eurostat databases. The lowest level of iovatio activities, carried out by eterprises i 26, was observed i Łódzkie ad Lubuskie regios, whereas i 214 i Świętokrzystkie ad Warmińsko-Mazurskie. I 26 the values of three out of four iovatio activity idicators were, by far, the lowest amog all regios: expediture o iovatios i eterprises per 1 professioally active perso (PLN 472,48), share of idustrial sector eterprises, which icurred expediture o iovatio activities (PLN 13,64%) ad share of service sector eterprises, which icurred expediture o iovatio activities (11,26%). I 26 Lubuskie regio recorded the lowest share of spedig o eterprise iovatios i domestic expediture (1%). I 214 Świętkorzyskie regio recorded the lowest values of three out of four iput iovatio idicators i the group of 16 regios, i.e.: share of expediture o eterprise iovatio activities i domestic expediture (,7%), 1679

6 The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 eterprise iovatios i domestic expediture (1%), expediture o iovatios i eterprises per 1 professioally active perso (PLN 381,15), share of iovatig eterprises i the idustrial sector (9,48%). I 26 Pomorskie ad Mazowieckie regios were characterized by the defiitely highest level of output iovatio activity. I Pomorskie regio the most favourable values, comparig to all regios, were recorded for: the share of sold productio of ew/sigificatly improved products i idustrial eterprises i the total value of sold goods (33,5%) ad the average share of iovatig eterprises i the total umber of eterprises (26,25%). I 26 the lowest iovatio activity of eterprises was observed i Kujawsko-Pomorskie ad Zachodiopomorskie regios. I 214 the highest output iovatio activity was characteristic for Dolośląskie ad Śląskie regios, whereas the lowest oe, similarly to iput iovatio activity, for Warmińsko-Mazurskie ad Świetokrzyskie regios. I 26 the highest total iovatio activity was recorded i Mazowieckie ad Pomorskie regios, ad the lowest i Łódzkie ad Lubuskie. I 214 Mazowieckie ad Dolośląskie regios were i the lead, while the lowest iovatio activity level was observed i Warmińsko-Mazurskie ad Świetokrzyskie regios. Table 1 presets the descriptive parameters of aggregate measures for iput, output ad total eterprise iovatio activity level i both studied periods. Tab. 1: Descriptive parameters of aggregate measures for eterprise iovatio activity level i Polish regios i the years 26 ad 214 Descriptive parameters SMiput SMoutput SMAI SMiput SMoutput SMAI Miimum,1,19,13,8,1,5 Maximum,81,75,78,85,68,63 Rage,8,55,65,78,67,59 Mea,31,44,37,35,35,35 Media,32,4,35,34,35,36 Variatio coefficiet (%) 67,52 44,19 52,8 6,18 5,76 52,16 Skewess coefficiet -,1,6,36,17 -,2 -,13 where: SMiput, SMoutput, SMAI aggregate measure of iput, output ad total eterprise iovatio activity Source: authors calculatios based o LDB ad Eurostat databases. The defiitely highest diversificatio i both 26 ad 214 was characteristic for Polish regios i terms of iput iovatio activity level, however, this diversificatio has sigificatly decreased. The coefficiet of variatio of aggregate measures SMiput preseted the followig respective values i 26 ad 214: 67,52% ad 6,18%. Regioal diversificatio i terms of output iovatio activity was the lowest, but it wet up from the level of 44,19% i 26 to 168

7 Absolute chage The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 5,76% i 214. The dispersio of regios regardig total iovatio activity i both studied periods reached the level of approx. 52%. The distributio of aggregate measures was characterized by sigificat positive asymmetry i 26 i case of output iovatio activity level (,6) ad the total oe (,36), which meas that the domiatig regios were characterized by lower tha average iovatio activity. Fig. 2 presets absolute chages of aggregate measures for iput, output ad total eterprise iovatio activity, recorded i 214 agaist Polish regios were characterized by the icrease of iput iovatio activity, whereas the largest oe took place i Łódzkie, Zachodiopomorskie ad Dolośląskie regios. The largest drop i iput iovatio activity was true for Świętokrzyskie ad Podlaskie regios. I case of 6 regios oly a slight upward tred of output iovatio activity was observed, alog with a sigificat drop i the remaiig regios with the largest oe occurrig i Mazowieckie, Pomorskie, Świętokrzyskie ad Warmińsko- Mazurskie. Łódzkie regio was characterized by the largest total iovatio activity growth, whereas Świętokrzystkie ad Pomorskie regios by the largest declie of this idicator. Fig. 2: Absolute chages of aggregate measure values for iput, output ad total iovatio activity i the years 26 ad 214,5,4,3,2,1 -,1 -,2 -,3 -,4 SMiput SMoutput SMAI Source: authors compilatio based o LDB ad Eurostat databases. Table 2 presets the divisio of regios ito classes i terms of total iovatio activity level. As it ca be observed, 3 equal groups of regios were distiguished i both aalysed years. The smallest group covers the regios presetig high activity level of eterprises ad i 26 it icluded Mazowieckie, Śląskie ad Pomorskie regios, whereas i 214 Mazowieckie, Dolosląskie ad Śląskie regios. The largest group listed 7 regios presetig the average iovatio activity level i each of the years. The distributio of aggregate measures was 1681

8 The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 characterized by sigificat positive asymmetry i 26 i case of output iovatio activity level (,6) ad the total oe (,36), which meas that the domiatig regios were characterized by lower tha average iovatio activity. Tab. 2: The classificatio of Polish regios i terms of total iovatio level i the years 26 ad 214 Total iovatio activity level High Average Low Years Regio SMAI value Regio SMAI value Mazowieckie,7764 Mazowieckie,633 Śląskie,6234 Dolośląskie,6254 Pomorskie,6154 Śląskie,5624 Dolośląskie,5157 Lubelskie,5231 Podkarpackie,4868 Opolskie,4514 Lubelskie,4739 Podkarpackie,454 Opolskie,3743 Pomorskie,394 Małopolskie,3588 Małopolskie,3727 Świętokrzyskie,3426 Łódzkie,345 Podlaskie,3255 Zachodiopomorskie,2968 Wielkopolskie,2841 Wielkopolskie,2568 Warmińsko-Mazurskie,2365 Kujawsko-Pomorskie,2263 Kujawsko-Pomorskie,1695 Podlaskie,1879 Zachodiopomorskie,148 Lubuskie,1678 Lubuskie,134 Świętokrzyskie,814 Łódzkie,1257 Warmińsko-Mazurskie,478 Source: authors calculatios based o LDB ad Eurostat databases. Fig. 3 illustrates iterdepedecies occurrig betwee the level of iput, output ad total iovatio activity level ad the level of GDP per capita. Due to the fact that Mazowieckie regio was characterized by uusual, defiitely the highest ecoomic potetial, it was ot take ito accout i assessig the impact of particular iovatio types o Polish regios GDP per capita. The aalysis of figure 3 shows that the relatioships occurrig betwee iovatio activities ad ecoomic potetial were isigificat. I all aalysed cases they were best reflected by the aalytical fuctio of third degree polyomial. It ca be oticed that both i 26 ad 214 the total of iovatio activities had the highest, eve though isigificat, impact o GDP per capita (respectively R 2 =,318 ad R 2 =,4373), whereas output iovatio activities the lowest (respectively R 2 =,234 ad R 2 =,384). I 214 a slight icrease of all aalysed iovatio activity types o the ecoomic potetial of Polish regios was observed. Fig. 3: The level of eterprise iovatio activity ad the level of GDP per capita i the years 26 ad

9 PKB per capita PKB per capita PKB per capita PKB per capita PKB per capita PKB per capita The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, y = 85528x x ,9x R² =,2471,2,4,6,8 SMiput y = x x x ,7 R² =,417,2,4,6,8 SMiput y = 28577x x ,6x R² =,234,2,4,6,8 SMoutput y = x x x R² =,384,2,4,6,8 SMoutput y = 16523x x x R² =,318,2,4,6,8 SMAI 1 5 y = 26416x x x ,8 R² =,4373,2,4,6,8 SMAI Source: authors compilatio based o LDB ad Eurostat databases. Coclusios Based o the coducted empirical research it ca be cocluded that the diversificatio of eterprise iovatio activity i Polish regios i 26 ad 214 was sigificat, the variatio coefficiet exceeded 5%. The exceptio was the diversificatio of regios i terms of output iovatio activity i 26 (44,19%). I 214 the dispersio of regios related to iovatio activity was lower, whereas with regard to output iovatio activity it wet up. The highest total 1683

10 The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 iovatio activity, i both aalysed periods, was characterized by Mazowieckie regio ad the lowest by Łódzkie regio i 26, but i 214 by Warmińsko-Mazurskie. I the years 26 ad 214 the iovatio activity of eterprises did ot exert ay substatial impact o GDP per capita. This coclusio refers to iput, output ad the of total iovatio activities. It seems fouded to exted further empirical research by all NUTS 2 Europea Uio regios ad to attempt assessig their diversificatio i terms of iovatio activity ad its impact o a ecoomic potetial i order to distiguish a referece regio. Refereces Adrews, R. (1953). Mechaics of the urba ecoomics base. Historical developmet of the base cocept. Lad Ecoomics, 29 (2). Bishop, P. (28). Spatial spillovers ad the growth of kowledge itesive services. Tijdschrift Voor Ecoomische e Sociale Geografie, 99, Echeverria, J. (28). The Oslo maual ad the social iovatio. Arbor-Ciecia Pesamieto y Cultura, 184(732), Florida, R. (1995). Toward the learig. Futures 27, Głuszczuk, D. Fiasowaie działalości iowacyjej przedsiębiorstw. Wrocław: Wydawictwo Uiwersytetu Ekoomiczego we Wrocławiu. Grosse, T. (22). Przegląd kocepcji teoretyczych rozwoju regioalego. Studia Regioale i Lokale, 1 (8). Kukuła, K. (2). Metoda uitaryzacji zerowaej. Warszawa: Wydawictwo Naukowe PWN. Marti, R. & Suley, P. (1996). Paul Krugma s geographical ecoomics ad its implicatios for regioal developmet theory: a critical assessmet. Ecoomic Geography, 72, OECD/Europea Commuities (25). Oslo Maual: Guidelies for Collectig ad Iterpretig Iovatio Data, 3rd Editio, Shypulia, Y. (215). Maagemet of formatio ad developmet of eterprise's iovative culture. Marketig ad Maagemet of Iovatios, 1, Storper, M. (1997). The Regioal World. Territorial Developmet i a Global Ecoomy. New York: The Guilford Press. Teece, D. (21). Busiess Models, Busiess Strategy ad Iovatio. Log Rage Plaig, 43(2-3),

11 The 1 th Iteratioal Days of Statistics ad Ecoomics, Prague, September 8-1, 216 Cotact Prof. UE dr hab. Elżbieta Sobczak Wrocław Uiversity of Ecoomics 3 Nowowiejska Street 58-5 Jeleia Góra elzbieta.sobczak@ue.wroc.pl Dariusz Głuszczuk PhD Wrocław Uiversity of Ecoomics 3 Nowowiejska Street 58-5 Jeleia Góra dariusz.gluszczuk@ue.wroc.pl 1685

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