Innovative Activity of the Service Sector of the EU Member States

Abstract

Expenditures on innovative activities, including R&D, play a key role in introducing innovations and consequently in the level of innovativeness. The aim of the research was to assess the level of innovative activity in the service sector in the Member States of the European Union (EU), in terms of incurred expenditure and achieved effects. To achieve the given aim various methods were used, including: monographic method, analysis and criticism of the literature, index and statistical analyses. The implementation of the assumed goal was carried out on the basis of two groups of indicators — effects and expenditure incurred on innovative activities. The research procedure was carried out in three stages: detailed assessment of the indicators, identification of similarities within the studied countries and determination of correlations occurring in them, and assessment of the synthetic Perkal’s indicator regarding outlays and effects. The results of the research provided information on the level of the use of inputs in relation to the effects in the service sector of individual EU countries. Countries ranked high in the innovativeness ranking (Denmark, France) are characterized by higher outlays and the effects achieved as a result of them, as well as show favorable or neutral relations between them. A high level of effects in relation to the expenditure was also observed in Malta, Spain, and Croatia. The results of the research constitute valuable information on the effectiveness of the use of expenditure on innovative activities, especially significant from the point of view of service entities from countries with a low level of innovative activity. These enterprises should draw on good practices and experience and even try to cooperate in the creation of innovations with companies from countries with a high level of innovative activity. Consequently, such practices will contribute to a more dynamic and sustainable development of innovativeness in the service sector of all EU.

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“…This is because firms' innovativeness can shift firms' competitive advantages, which can contribute to the competitiveness of regions and countries (Fitsch et al, 2020). In this context, expenditures on firms' innovation activities is considered to be essential for stimulating firms' innovation attitudes (Zygmunt, 2020a;Decyk, 2023). For this reason, research in this area is of great importance and has been the subject of a number of studies (Brodny, Tutak, 2022;Wyrwa, 2022).…”

“…Research attention has also been paid to expenditures on firms' innovation activities. Such expenditures are believed to be a key element in increasing firms' innovativeness (Decyk, 2023). This study focuses on the above driver of firms' innovation activities to provide further considerations in this area.…”

“…Previous studies provide evidence that the issues related to expenditures on firms' innovation activities have been previously considered for Poland. In this context, the main areas of research have been placed mostly on firms' R&D expenditures as a stimulator of firms' innovativeness (Zygmunt, 2020a;Lubacha, 2021;Wyrwa, 2022;Brodny, Tutak, 2022;Decyk, 2023).…”