SMEs innovativeness and institutional support system: The local experiences in qualitative perspective. Polish case study

Abstract

Research background: Many contemporary empirical studies and most economic growth theories recognize the importance of innovation as one of the most progressive determinants of socio-economic growth, both in the regional and local perspective. However, much of the empirical literature has discussed the issue of innovativeness and institutional environment without the significant results for small enterprises, especially in peripheral regions. Purpose of the article: The aim of this paper is to evaluate the institutional support system and its impact on SME innovativeness in Podkarpackie region. In analyzing this case, we raise the following two questions: (1) what are the types of innovation strategies of SMEs in Podkarpackie? (2) what are the factors affecting innovation and potential barriers to further use of institutional support systems aimed at the implementation of innovation in enterprises? Methods: Based on the empirical research, we have analyzed the data (individual in-depth interviews) and found out how the entrepreneurs, R&D, business environment institutions, regional and local authorities assess the use of programs and projects dedicated to innovation in the scope of the institutional support system and what are the barriers encountered by entrepreneurs that limit the implementation of innovation. Findings & Value added: The results of our research show that institutional support systems mitigate negative consequences of peripheral localization of the enterprises, where specific innovation strategy has no influence on SME assessment of innovation effectiveness. Innovation is too costly, and SMEs are too weak in peripheral regions, therefore there is great need for reasonable and flexible institutional support systems. However, the peripheral situation influences this institutional system itself, strengthening the mechanisms of self-censorship.