LOGISTICS INNOVATIONS DEVELOPMENT IN THE CEE REGION

Abstract

Although innovation in general and logistics innovation in particular have been discussed in various contexts, there has been a limited amount of empirically based research on logistics innovation and its determinants. The purpose of this paper is to investigate determinants behind the probability of introducing innovations in logistics, delivery or distribution methods for inputs, goods and services among manufacturing firms in eight Central and East European (CEE) countries during the 2012-2014 period using the bivariate probit analysis. To this end, the paper uses data from Community Innovation Survey (CIS), a confidential dataset compiled by Eurostat on innovation activities of firms in the EU member states. Findings reveal differences in innovation process among three groups of firms as well as different mediating effects of selected variables on creation of logistics innovations and combined effects of public subsidies and procurement. The paper adds to the knowledge of determinants of incremental and radical logistics innovations in the CEE region.