Public and Private Investment in Innovation. The Differences between the Visegrad Group Countries

Regarding the role of innovation in competitive advantage of firms, regions and country it is essential to check how public and private investment in innovation differ between the European Union countries. Here, special attention was put on the Visegrad Group countries (V4).Hence, the aim of this paper is to explore how public and private investment in innovation differ between V4 countries. Design/methodology/approach:In this study zero unitarization method and multivariate analysis wereapplied. These methods enable to explore the differences between V4 countries in regard to R&D expenditure in the public sector, venture capital expenditures, R&D expenditure in the business sector, non-R&D innovation expenditures and enterprises providing training to develop or upgrade information and communication (ICT) skills of their personnel. The time period was 2009–2015. The study used data from the European Innovation Scoreboard 2017 relating to public and private investment in innovation dimensions: finance and support and firm investments. Findings: The analysis indicates, among others, the high rank of the Czech Republic in terms of public and private investment in innovation indicators (in comparison to the other Visegrad Group countries). In regard to Hungary, Poland and Slovakia, the findings imply further enhancing the level of R&D expenditure in the public sector, venture capital expenditures, R&D expenditure in the business sector, non-R&D innovation expenditures and enterprises providing training to develop or upgrade ICT skills of their personnel. Research/practical implications:The practical and policy implication of this study is that there is a need to strengthen indicators of public and private investment in innovation (in particular in Hungary, Poland and Slovakia). Regarding future research, it is important to study potential causes of differences between V4 countries (in terms of public and private investment in innovation). Originality/value:This paper contributes to the existing literature by providing new insight on understanding the issues connected with public and private investment in innovation.