The Main Factors that Determine the Company’s Innovations–Empirical Research of Companies in Serbia

Abstract

In the constantly changing business environment, innovations enable companies to achieve competitiveness and expand to new markets. Measuring a company’s ability to innovate is important for both theoretical consideration and practical application. This paper presents the analysis of 21 dimensions of the innovation capacity of small and medium enterprises in Serbia. The observed sample included 106 companies of various size and activities. The following main factors that affect the innovation capacity of companies had been identified: adaptability and growth projection, business network, management style, knowledge management, company resources and the speed of product development for the market. The identified factors were used to predict the future of the company’s cooperation with the academy, and whether the company will undertake activities to protect intellectual property rights, which are both considered important parts of the innovation process in companies. The results of the research indicate the important factors that determine a company’s survival in modern market conditions. It was obtained that companies with a developed business network are more willing to cooperate with the academic community, while the management style has the greatest influence on the protection of intellectual property.