Differences between Hungarian Innovation-Driven and Innovative Enterprises based on Primary Research

Szoboszlai, Mihály and Várnai, Tímea and Szakály, Áron (2024) Differences between Hungarian Innovation-Driven and Innovative Enterprises based on Primary Research. FINANCIAL AND ECONOMIC REVIEW, 23 (2). pp. 83-104. ISSN 2415-9271 (print); 2415-928X (online)

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Abstract

The extensive growth model of the Hungarian economy in the 2010s should be gradually completed and then replaced by an intensive growth framework with innovation at its core. This is why it is important to gain a deeper insight into the innovation process. Innovation-driven enterprises are a specific group of innovating firms, which are special in that they achieved rapid revenue growth in their innovation-oriented business in the 2010–2019 business cycle. In our research, we explore what factors influence rapid growth among innovative firms. Our results indicate that the factors supporting growth were rising technological and human capital levels, increasing export intensity and improving access to venture capital, while the credit financing at low interest rate that characterised the previous decade did not lead to rapid growth in the distinctive innovation-driven segment. Innovative enterprises are typically robust companies with strong indicators and in many cases (entrepreneurial capacities, attitudes or perception of the market) they show similarities to enterprises in the innovation-driven group.

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