UNIVERSITY OF PARDUBICE FACULTY OF ECONOMICS AND ADMINISTRATION Institute of Economic Sciences EVALUATION OF THE ROLE OF CRUCIAL IMPACTS ON NETWORKS FOR TECHNOLOGICAL INNOVATION Ing. Anderson, Henry Junior SUPERVISOR: Assoc. Prof. Ing. Jan Stejskal, Ph.D. Dissertation thesis 2020 TABLE OF CONTENTS INTRODUCTION ..................................................................................................................... 1 1. CONCEPTUAL FRAMEWORK ................................................................................... 3 1.1. Innovation Systems: Technological Innovation Systems............................................ 3 1.1.1. Functional Processes of Technological Innovation System................................. 4 1.1.2. Emergence and Renewed Direction of Technological Innovation System ......... 7 1.2. Contemporary Indicators of Modern Technological Innovation................................. 9 1.2.1. Research Systems................................................................................................. 9 1.2.2. Financial Cradles ............................................................................................... 10 1.2.3. Human Capital ................................................................................................... 12 1.2.4. Cooperation ........................................................................................................ 13 1.3. Regional Attractiveness for Innovation and Foreign Direct Investments ................. 14 1.4. Innovation Indicators’ Contribution to Regional Innovators .................................... 16 1.4.1. Product and Process Innovation ......................................................................... 17 1.4.2. Organizational and Market Innovation .............................................................. 19 1.5. Barriers to Synergetic Value Creation for Innovation .............................................. 23 1.6. Regional Differences in Innovation Indicators’ Contribution................................... 28 1.7. Connection of Innovators to the Creation of Technological Innovation ................... 29 1.8. Research Gaps and Motivation ................................................................................. 32 1.9. Technological Innovation: Measurement Variables ................................................. 34 1.10. Aims and Objectives ................................................................................................. 35 2. METHODOLOGY ....................................................................................................... 40 2.1. Dissertation Objective ............................................................................................... 40 2.2. Specific Objectives .................................................................................................... 40 2.3. Research Area ........................................................................................................... 43 2.4. Sources of Data ......................................................................................................... 45 2.5. Data Analytical Methods Used ................................................................................. 51 2.6. PLS-SEM Analysis ................................................................................................... 52 2.7. Ordinary Least Squares Approach ............................................................................ 55 3. RESULTS AND DISCUSSION ................................................................................... 57 3.1. Tests of Data Suitability ............................................................................................ 57 3.2. Test of Robustness .................................................................................................... 60 3.3. Influence of the Framework Conditions on Innovators in the European Union ....... 62 3.3.1. Dependent Variables .......................................................................................... 62 3.3.2. Independent Variables ....................................................................................... 62 3.3.3. Discussion of Results ......................................................................................... 65 3.3.4. Summary of Implications and Recommendations ............................................. 68 3.4. Influence of Innovators on the Creation and Dissemination of Patents, Trademarks and Design Applications .......................................................................................................... 71 3.4.1. Dependent Variables .......................................................................................... 71 3.4.2. Independent Variables ....................................................................................... 71 3.4.3. Discussion of Results ......................................................................................... 72 3.4.4. Summary of Implications and Recommendations ............................................. 76 3.5. Assessment of Marginal Contribution to Technological Innovation by Innovation Classes. 78 3.5.1. Dependent Variables .......................................................................................... 78 3.5.2. Independent Variables ....................................................................................... 78 3.5.3. Discussion of Results ......................................................................................... 79 3.5.4. Summary of Implications and Recommendations ............................................. 83 4. CONCLUSION ............................................................................................................. 85 APPENDIX .............................................................................................................................. 89 BIBLIOGRAPHY .................................................................................................................... 96 AUTHOR’S DECLARATION I hereby declare: This thesis was prepared separately. All the literary sources and the information I used in the thesis are listed in the bibliography. I got familiar with the fact that the rights and obligations arising from the Act No. 121/2000 Coll., Copyright Act, apply to my thesis, especially with the fact that the University of Pardubice has the right to enter into a license agreement for use of this thesis as a school work pursuant to § 60, Section 1 of the Copyright Act, and the fact that should this thesis be used by me or should a license be granted for the use to another entity, the University of Pardubice is authorized to claim a reasonable contribution from me to cover the costs incurred during making of the thesis, according to the circumstances up to the actual amount thereof. I am aware that my thesis will be accessible to the public in the University Library and via the Digital Library of the University of Pardubice in agreement with the article 47b of the Act No. 111/1998 Coll., on Higher Education Institutions, and on the Amendment and Supplement to some other Acts (the Higher Education Act), as subsequently amended, and with the University Pardubice’s directive no. 7/2019. In Pardubice on May 13, 2020 Ing. Henry Junior Anderson ACKNOWLEDGEMENTS I wish to express my endless appreciation to my supervisor, Assoc. Prof. Ing. Jan Stejskal, for his unwavering support, motivation, encouragement, commitment and criticisms during my studies and research. I am of deep debt to Prof. RNDr. Oto Hudec, CSc and as well Ing. Samuel Amponsah Odei, Ph.D for their suggestions and guidance as well. Loads of thanks to the ever- available Mrs. Bartonickova Radka for her efficient information relay and willingness to help anytime. My special thanks also go to my dad and my mum and study mates Bright Frimpong of The University of Texas Rio Grande Valley for his endless motivations. Space and time would not permit me to mention the names of everyone who helped in diverse ways to make this study a success, I really appreciate your immense contributions, may God bless you all. DEDICATION I dedicate the entire content of this thesis to my parents and I’m honoured and blessed to have them see this completed successfully with light still in their eyes. ANNOTATION Technological innovation, in recent times, has been pivoted as the foundation of regional competitive advantage. Its generation has grown to a multi- interactive structure involving multiple elements ranging from human capital, financial capital, social capital and structural capital and knowledge interactions. In effect, some regions have pivoted their funding acquisitions on the best innovating firms whilst others focus more on creation of structures to assist Small and Medium Scale Enterprises (SMEs) to nurture their innovation base appreciably for a higher regional competitive advantage. In light of competition from other states, the European Union have initiated funding schemes like Horizon 2020, aside regional targets of for research and development expenditure, to strongly propel the innovation status of the bloc. Other framework conditions such as human, social and structural capital have been focused on as well, however, there have been arguments about their actual role played. Literature have portrayed them to have varying and contrasting effect in the eco-system for creation of technological innovation in various contexts ranging from regional need to partners involved and even to