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Innovation and diffusion of innovation in the Polish economy in theoretical and practical terms

Combining the issues of competitiveness, entrepreneurship and inno-vation, look at previously constructed defi nitions of the concept of tion, as it is extremely diffi cult to defi ne it due to the perception of innova-tive actions. The main reasons inspiring the implementation of innovations, also referred to their characteristics, are: benefi t for the consumer, the degree of needs and expectations satisfaction, and their divisibility, communica-tion and complexity. In “Marketing encyclopaedia” innovacommunica-tion (Lat. inno-vatio) means to renew and sets idea, procedure, or thing that is new because it is qualitatively different from the existing ones. Innovation in business means new products and services and the operation of supplying them to customers and convincing them useful. Innovations create for entrepreneurs and managers favourable opportunities to make signifi cant changes, a new activity, new services and sourcing buyers thanks to innovative and suc-cessful innovation is a test of its success in the market46. In the literature, the creator of the concept of innovation has been widely recognized Austrian economist J.A. Schumpeter, who at the beginning of the twentieth century defi ned innovation as: the introduction of a new product with which consum-ers have not yet had to deal with; a new species or some of the goods; intro-duction of new prointro-duction methods that are practically proven in the fi eld of industry; open a new market, i.e. one in which a specifi c type of domestic industries previously did not work, and this regardless of whether the

mar-45 J. Żmija, Polska wieś 2012. Potencjał obszarów wiejskich szansą rozwoju, Kancelaria Prezydenta Rzeczpospolitej Polskiej, Biuletyn Forum Debaty Publicznej, No. 23, Warszawa 2013, p. 53.

46 T. Szucki, Encyklopedia Marketingu, wyd. I, Agencja Wydawniczo-Poligrafi czna “Plac-et”, Warszawa 1998.

ket has existed before or not; acquire new sources of raw materials or semi-fi nished products, regardless of whether the source already existed or had yet to be created; introduction of a new organization of some industries, for example introduction of a monopoly or a monopoly break47. Constructing the defi nitions of innovation, Schumpeter treats it as initiating and imple-menting new solutions serving as a prelude to achieve success in a market economy. Triad of J. A. Schumpeter consists of: invention – that is, discov-ery, ingenuity and inventiveness in the area of operation; innovation – ap-plication of solutions and innovations; imitation – dissemination, imitation and diffusion of innovation. In turn, by S.R. Whitfi eld innovation is: a string of complex activities involving problem solving. The result is a complete and fully developed novelty48. By defi nition, special emphasis has entered into a novelty by which a product or service is to bring some profi ts. Known to all S. Drucker defi nes innovation as: specifi c tool of entrepreneurs, the means by which changes make the opportunity to take up a new business or to provide new services49, but also: innovation is the specifi c instrument of entrepreneurship – an action that gives resources new opportunities to create wealth50. Without a doubt, the defi nition of innovation by S. Drucker has the nature of economic or social possibility, but not technical. The next of the creators of the concept Ch. Freeman believed that only the implemen-tation of a new product, process, system or device can be called innova-tion. According to him, we can talk about innovation when for the fi rst time to be the subject of trade51. Specifying modern innovations, we associate it with changes, no matter what area of business, economy or region con-cerned. M. Wigler emphasizes that if anything has happened at one time, there would be no development, and if it all happened in one place, there would be no diversity, which determines that the development of the whole world since the dawn of history is held by a polarization and diffusion and the emergence of innovations that have been adapted by the environment52.

With time outweighed was also a difference between innovative ac-tivities and the ordinary acac-tivities of companies. Each of them as operating a business – regardless of whether manufacturing or service under

condi-47 J.A. Schumpeter, Teoria rozwoju gospodarczego, PWN, Warszawa 1960, p. 104.

48 S.R. Whitfi eld, Innowacje w przemyśle, PWE, Warszawa 1979, p. 26.

49 S. Drucker, Innowacja i przedsiębiorczość, PWE, Warszawa 1992, p. 28.

50 Ibidem, p. 28.

51 Ch. Freeman, L. Soete, The Economics of Industrial Innovation, The MIT Press, 1997, p. 198.

52 M. Wigier, Polska wieś 2012. Potencjał obszarów wiejskich szansą rozwoju, Kancelaria Prezydenta Rzeczpospolitej Polskiej, Biuletyn Forum Debaty Publicznej, No. 23, Warszawa 2013, p. 71.

tions of strong competition – are forced every day to make a lot of new, original and unconventional actions, enabling the company to survive in the market53. K. Wandelt for innovation considered: utilization of inven-tion to the specifi c producinven-tion purposes54, and by W. Kotarba innovation is:

the process or result of the process evaluated by a specifi ed entity as a new and benefi cial55. Extremely versatile defi nition gave Z. Pietrasiński, think-ing for innovation: changes deliberately introduced by man, which consist of replacing the existing states of affairs other positively assessed in the light of certain criteria making up a total of progress56. According to it, the deter-mination of innovation deserves a change that brings progress, for example causing an increase in productivity. In turn, A. Pomykalski shared innova-tion because of the range of the result or process. The scope of the result is:

change in production, consequently leading to new products57. The scope of this process is: all the creative thinking processes aimed at application and use of improved solutions in the art, technology, organization, social life58. According to E. Okoń-Horodyńska the sense of innovation is seen in the fact that: in addition to the fact that many require fulfi lment of spe-cifi c conditions – Are the fi rst and farthest-reaching social collective ef-fort, a cooperative process in which companies, especially small ones, are dependent on the discretion of broad social circles voters, which exempli-fi es through their acceptance by labour resources, suppliers, consumers, technical institutions, training organizations and so on., which always re-quires a long term perspective59. S. Niedzielski treated innovation compa-rably: feature of operators or economies, meaning the ability to create and implement innovations, as well as their absorption, binding to the active engaging in innovative processes and taking action in this direction and is involved in the acquisition of resources and skills necessary to partici-pate in these processes60. M. Dolińska consider innovation as a process or

53 K. Szatkowski, Zarządzanie innowacjami technicznymi i organizacyjnymi, Difi n, War-szawa 2001, p. 19-20.

54 K. Wandelt, Studia nad postępem technicznym i organizacyjnym, PWN, Poznań 1972, p. 22-23.

55 W. Kotarba, Organizacja wynalazczości w przedsiębiorstwie, Zrzeszenie Wojewódzkich Klubów Techniki i Racjonalizacji, Warszawa 1987, p. 7.

56 Z. Pietrasiński, Ogólne i psychologiczne zagadnienia innowacji, PWN, Warszawa 1971, p. 9.

57 A. Pomykalski, Zarządzanie innowacjami, PWN, Warszawa–Łódź 2001, p. 17.

58 Ibidem, p. 17.

59 E. Okoń-Horodyńska, Innowacje w rozwoju gospodarki i przedsiębiorstw: siły motorycz-ne i bariery, Instytut Wiedzy i Innowacji, Warszawa 2007, p. 3-4 59.

60 S. Niedzielski, Rodzaje innowacji [in:] Innowacje i transfer technologii – Słownik pojęć, ed. K.B. Matusiak, PARP, Warszawa 2005, p. 74.

the effect of the implementation of it61. According to E. Stawasz innovation process is the innovation phenomena, which include not only the fi nal result of the implementation of specifi c technical tasks, but also actions prior to its creation62.

In the classical model of innovation one can extract several successive phases in chronological order. It is a linear model in which there are one-way chains of ties between science and industry, while the source of the idea of innovative activity is research. Classical linear model includes the fol-lowing phases63:

• basic research,

• applied research,

• development,

• fi rst application,

• diffusion.

Innovation can be seen as a process or as a result of its implementa-tion64. The process includes the creation of an innovative idea; research and development, design; production and dissemination of it65. Innovation can also be considered as economically successful exploitation of new ideas, which result in:

• new or signifi cantly improved goods (or services),

• new or signifi cantly improved processes,

• new marketing methods or new methods in business practices, work-place organization or external relations with the environment66. The concept of outcome refers to any good, service or idea that is per-ceived by the recipient as a new67. According to the defi nition combining both approaches, innovation is understood as the implementation of a new or signifi cantly improved product (good or service) or process, a new market-ing method, or a new organizational method in business practice, workplace organization or external relations with the environment68. Distinguished are

61 M. Dolińska, Innowacje w gospodarce opartej na wiedzy, PWE, Warszawa 2010.

62 E. Stawasz, Rodzaje innowacji [in:] Innowacje i transfer technologii – Słownik pojęć, ed.

K.B. Matusiak, PARP, Warszawa 2005, p. 37.

63 W. Janasz, K. Janasz, A. Świadek, J. Wiśniewski, Strategie innowacyjne przedsiębiorstw, Wydawnictwo Naukowe Uniwersytetu Szczecińskiego, Szczecin 2001, p. 195.

64 M. Dolińska, Innowacje…, op. cit.

65 E. Stawasz, Innowacje a mała fi rma, Wydawnictwo Uniwersytetu Łódzkiego, Łódź 1999.

66 Innowacje i transfer technologii. Słownik pojęć, ed. K.B. Matusiak, PARP, Warszawa 2008, p. 141-142.

67 A. Pomykalski, Zarządzanie…, op. cit., p. 17.

68 Podręcznik Oslo. Zasady gromadzenia i interpretacji danych dotyczących innowacji, OECD, Warszawa 2008.

social innovations and technical innovations, depending on changes in tech-nology69, which are divided into three groups: product, process and organi-zational innovations70.

The study of W. Janasz and K. Koziol-Nadolna show division of in-novative products and processes to:

• new worldwide,

• new in the country or industry, and

• new only to the undertaking company71.

S. Dwojacki and J. Hlousek argue that innovative activity requires ex-penditures for:

• research and development,

• technology assets,

• purchase of advanced machinery, equipment, computer hardware or software, as well as land and buildings (including upgrades and repairs),

• staff training and marketing of new and improved products,

• other activities include design work, planning and testing of new products and services, production processes and methods of de-livery72.

Interesting seems to be a classic and modern approach to the innova-tion process, where in the case of the fi rst innovainnova-tion is unpredictable pro-cess, while the second – predictable. In the classical approach, innovation is the process: individual, impossible to manage and control, and is random.

The approach is a modern innovation: the group process, multidisciplinary, modifi cation of existing solutions, as well as the process of controlled and carefully delimited73.

In companies implementing innovation and implementing inno-vative processes necessary to collect data should be considered in terms of the objectives and effects of innovation implemented in the selected peri-od. It is the result of the assumption that innovative activity is undertaken for various reasons, and its effects are of concern products, markets, the quality

69 B. Ileczko, Podstawy typologiczne ogólnej teorii innowacji, “Zagadnienia Naukoznaw-stwa” 1979, No. 4.

70 J. Moszczyński, Międzynarodowe standardy metodologiczne statystyki z zakresu innowa-cji technologicznych, KBN, Warszawa 1994.

71 W. Janasz, K. Kozioł-Nadolna, Innowacje w organizacji, PWE, Warszawa 2011.

72 S. Dwojacki, J. Hlousek, Zarządzanie innowacjami, Centrum Badawczo-Rozwojowe, Gdańsk 2008.

73 More on this: A. Pomykalski, Zarządzanie procesem innowacji. Wybrane kierunki ba-dawcze [in:] Osiągnięcia i perspektywy nauk o zarządzaniu, eds. S. Lachiewicz, B. Nogalski, Ofi cyna a Wolters Kluwer Business, Warszawa 2010, p. 315.

and the possibility of change. It is important to study the motivation of com-panies to undertake innovative activities undertaken and the types of in-novation. Research must determine the relationship assumptions in relation to the results achieved by the company and additional benefi ts and effects resulting from their use. It should also be referred to earlier assumptions and motivations innovation. The objectives are to relate motivation to innovate, and effects to their effects. The list of factors relating to the goals and effects of the division into four types of innovation are presented in Table 1.

Table 1. Factors relating to the objectives and effects of innovation

The impact area

of products and services + The creation of environmentally

friendly natural products + Increase or maintain participation

in the market +

+

Entering new markets + +

Increasing the visibility and

exposure of products +

Shortening the time to respond to

the needs of clients + +

Production and delivery Improvement of the quality

of products and services + + +

Increased fl exibility of production

or provision of services + +

The increase in production or

service + +

The reduction in unit labour costs + +

Reducing consumption

of materials and energy + + +

Lowering the cost of designing

products + +

Shortening the production cycle + +

The achievement of sectoral

technical standards + + +

Lowering operating costs related

to the provision of services + +

Increasing the effi ciency or rate guarantee, or the provision of goods and services

+ +

Improving IT capacity + +

Workplace organization Improving communication and interaction between the different divisions in the company

+ Increasing the scope of the sharing

or transfer of knowledge in dealing with other entities

+ Increasing the ability to adapt

to different requirements

or improve the health and safety + + +

Fulfi lment of regulatory

requirements + + +

Source: Oslo Manual: Pomiar działalności naukowej i technicznej. Zasady gromadzenia i in-terpretacji danych dotyczących innowacji, OECD, Eurostat, Ministerstwo Nauki i Szkolnic-twa Wyższego, Departament Strategii i Rozwoju Nauki, Warszawa 2008, p. 112.

In turn, the transfer of knowledge in the literature is referred to diffu-sion and can take various forms of sales of products or services, and com-munication engineering. Moment of diffusion of innovation is their appear-ance on the market and is defi ned as a process of spreading and absorption in the manufacturing of the invention in more than one place74. Accord-ing to the Oslo Manual it is a way of dissemination and implementation in any place in the world (country, region, sector) of solutions by using innovative market and non-market channels. The diffusion process is often more than just the acquisition of knowledge and technology, as companies assimilating learn and use new knowledge and technologies as the basis for further action and through the process of diffusion of innovations may change and provide feedback to the original innovator75. J. Penc considered for the diffusion of innovation process of disseminating and promoting new

74 A.H. Jasiński, Innowacje techniczne a działalność marketingowa, Wydawnictwo Wyż-szej Szkoły Przedsiębiorczości i Zarządzania im. Leona Koźmińskiego, Warszawa 1998, p. 21; K. Poznańska, Innowacje w gospodarce kapitalistycznej, PWN, Warszawa 1979, p. 112.

75 Oslo Manual: Pomiar…, op. cit., p. 82.

solutions in an enterprise or economy, and present in the moment to as-similate the effective implementation76. K. Klincewicz draws attention to innovation on the supply side as introducing new products to market, as a re-sult of imitation and copying, and those on the buying side, dissemination of new products in the form of original and pioneering ideas and solutions77. J. Wiśniewska presented theories explaining the diffusion of innovation the-ory division at the heterogeneity of diffusion and the thethe-ory of epidemics.

Heterogeneity of diffusion theory assumes that consumers, buying an inno-vative product, expect other benefi ts and rational purchase them manifests it in the form of a future surplus of benefi ts over the cost of the product purchased. The theory of epidemic assumes the same needs of consumers, the fi xed cost of an innovative product and the lack of suffi cient information about the product78. The process of diffusion of innovations W. Janasz di-vided into equivalent stages, specifying: the creation of innovations subject to diffusion, the existence of communities of followers and the fl ow of in-novation from their creators to imitators79. The process of diffusion of inno-vation can also be seen in the spatial dimension, dividing them into intraor-ganizational, inter-organizational and interstate. It should also be mentioned characteristics determining the diffusion of innovation, because on the basis of established model named PZNTO, as an abbreviation of:

(P) – advantage over existing solutions,

(Z) – compliance with the needs, preferences and values of future cus-tomers,

(N) – low complexity and simplicity of innovation, (T) – testability and the possibility of checking,

(O) – observability of the results and their applicability80.

Another division proposes J. Wiśniewska, which distinguishes be-tween single and double phase model of diffusion of innovation. Single-phase model consists of a Single-phase of absorption, elimination and replacement of innovation and the two-phase model applies to innovation breakthrough,

76 J. Penc, Leksykon biznesu, Placet, Warszawa 1997, p. 89.

77 K. Klincewicz, Dyfuzja innowacji. Jak odnieść sukces w komercjonalizacji nowych pro-duktów i usług, Wydawnictwo Wydziału Zarządzania Uniwersytetu Warszawskiego, Warsza-wa 2011, p. 22-24.

78 J. Wiśniewska, Ekonomiczne determinanty dyfuzji innowacji produktowych i techno-logicznych w banku komercyjnym, Wydawnictwo Naukowe Uniwersytetu Szczecińskiego, Szczecin 2004, p. 51.

79 Determinanty innowacyjności przedsiębiorstw, ed. W. Janasz, Wydawnictwo Naukowe Uniwersytetu Szczecińskiego, Szczecin 2002, p. 63.

80 E.M. Rogers. Diffusion of Innovations, Free Press, New York 2003, p. 208; K. Klince-wicz, Dyfuzja innowacji. Jak odnieść sukces…, op. cit., p. 13; http://inko.wsb-nlu.edu.pl, accessed: 20.12.2013.

when there is only absorption phase and elimination phase is only expect-ed81. Extremely important limiting factors should be considered innovative activity of enterprises, among which fi nancial, informational, environmen-tal and organizational factors82. The organizational factors enlarges J. Ba-ruk who divides them into the structural, procedural and decision-making information83. Particular attention should be paid to factors of information and process, as it depends on them effi ciency and effectiveness of decision-making and implementation of innovative processes in the enterprise.

Continuation of open projects

Short-term incentives New projects selection Propositions of new projects of a company COMPANY STRATEGY

INNOVATION STRATEGY

Surrounding Company's aims Strenght and weak

features Innovation resources

R&D resources

New projects resources

Fig. 1. Procedure of innovation-related decision-making in a company

Source: K. Krzakiewicz, Innowacje w zarządzaniu antykryzysowym [in:] Zarządzanie in-nowacjami technicznymi i organizacyjnymi, ed. M. Brzeziński, Difi n, Warszawa 2001, p. 94.

K. Krzakiewicz graphically illustrated the innovative decision-making process in the enterprise, which determines the logistic approach in their implementation (fi g. 1)84.

81 J. Wiśniewska, Ekonomiczne…, op. cit., p. 118.

82 J. Włodarczyk, Działalność innowacyjna i jej ograniczenia w polskiej gospodarce [in:]

Innowacje w rozwoju gospodarki i przedsiębiorstw: siły motoryczne i bariery, eds. E. Okoń--Horodyńska, A. Zacharowska-Mazurkiewicz, Instytut Wiedzy i Innowacji, Warszawa 2007, p. 105.

83 J. Baruk, Organizacyjne uwarunkowania działalności innowacyjnej przedsiębiorstwa [in:] Zarządzanie innowacjami technicznymi i organizacyjnymi, ed. M. Brzeziński, Difi n, Warszawa 2001, p. 66-109.

84 K. Krzakiewicz, Innowacje w zarządzaniu antykryzysowym [in:] Zarządzanie innowacja-mi…, op. cit., p. 94.

In case of the food industry it is crucial to identify the needs and meth-ods useful in the transfer of knowledge and technology and to understand which of them in mutual fl ows play the most important role. Properly con-ducted innovation policy allows understanding and anticipating diffusion processes, their representation and implementation, and outline the paths of connections and knowledge transfer. For example, one might ask:

1. Does the policy should focus on promoting active cooperation, and if so, what types of partners are the most important?

2. does the fl ow of knowledge and technology is more important when they are associated with networks and other informal agree-ments that do not involve active cooperation85?

As noted by M. Dierkes relationships with market depend on the nature of the business, as an incentive for innovative activity company that oper-ates in a stable, mature industry or sector may be indicators such as the value of sales or costs used in the production of forces and means86.

It also seems very important to link innovation infrastructure, which should be treated as a kind of system, and the main features of the

It also seems very important to link innovation infrastructure, which should be treated as a kind of system, and the main features of the