Do R&D intensity and capacity utilisation matter for SMEs' innovations within the CEE region? Testing moderating roles of different ownership structures.

Existing innovation literature has assumed that the relationship between firms' R&D intensity and innovation take place without the interplay of other organizational factors. However, the reality differs, and research to date has shown that other factors affecting firms' innovation need to be considered. This is important especially in Central and Eastern Europe (CEE) countries, which are highly dependent on both internal and external R&D and are associated with an inability to use R&D resources effectively.

The role of foreign technologies and R&D in innovation processes within catching-up CEE countries.

Prior research showed that there is a growing consensus among researchers, which point out a key role of external knowledge sources such as external R&D and technologies in enhancing firms´ innovation. However, firms´ from catching-up Central and Eastern European (CEE) countries have already shown in the past that their innovation models differ from those applied, for example, in Western Europe. This study therefore introduces a novel two-staged model combining artificial neural networks and random forests to reveal the importance of internal and external factors influencing firms´ innovation performance in the case of 3,361 firms from six catching-up CEE countries (Czech Republic, Slovakia, Poland, Estonia, Latvia and Lithuania), by using the World Banks´ Enterprise Survey data from 2019.