<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The development of product innovations in small and medium enterprises is determined mainly by their financial capabilities. These enterprises usually encounter financial problems when it comes to the introduction of product innovations. Therefore, managers should manage the company’s finances in the way that will enable them using all available means to solve these problems. This means that they ought to use external financial resources to a greater extent (not only in the form of loans). The article focuses on the financial conditions for the development of product innovations in small and medium enterprises, while other forms of innovation are omitted. Product innovations are given the highest priority by mentioned companies. The analysis covered the years 2010-2017. The case study allowed to present changes in this most important form of activity for enterprises in the SME sector during the analyzed period<fn id="j_sh-2021-0017_fn_001" symbol="1"><p>For the purpose of this paper, large companies have also been included in the study in order to extend the comparative base.</p></fn>. In the article there were used data published by GUS, NBP, PARP, Eurostat. The article presents the following thesis: The innovative activity of Polish enterprises takes mainly the character of product innovations, which often require large financial outlays. Two hypotheses were used to verify the thesis: HPT1: The increase in the outlays of enterprises on technical progress and on research and development works (R&amp;D) leads to companies' own the development of product innovations. HPT2: The resources are the main source of financing for product investments. Due to the greater capacity of large companies to spend on R&amp;D, they are more active in product innovation than small companies, whose financial resources are significantly limited. Broader implementation of product innovations in SMEs requires wider access to finance and greater involvement of many participants. In order to be able to take advantage of all possible opportunities to renew the production programme, the company should ensure appropriate internal and external integration in the management of the process.</p>
</abstract>

The development of product innovations in small and medium enterprises is determined mainly by their financial capabilities. These enterprises usually encounter financial problems when it comes to the introduction of product innovations. Therefore, managers should manage the company’s finances in the way that will enable them using all available means to solve these problems. This means that they ought to use external financial resources to a greater extent (not only in the form of loans). The article focuses on the financial conditions for the development of product innovations in small and medium enterprises, while other forms of innovation are omitted. Product innovations are given the highest priority by mentioned companies. The analysis covered the years 2010-2017. The case study allowed to present changes in this most important form of activity for enterprises in the SME sector during the analyzed periodFor the purpose of this paper, large companies have also been included in the study in order to extend the comparative base.. In the article there were used data published by GUS, NBP, PARP, Eurostat. The article presents the following thesis: The innovative activity of Polish enterprises takes mainly the character of product innovations, which often require large financial outlays. Two hypotheses were used to verify the thesis: HPT1: The increase in the outlays of enterprises on technical progress and on research and development works (R&D) leads to companies' own the development of product innovations. HPT2: The resources are the main source of financing for product investments. Due to the greater capacity of large companies to spend on R&D, they are more active in product innovation than small companies, whose financial resources are significantly limited. Broader implementation of product innovations in SMEs requires wider access to finance and greater involvement of many participants. In order to be able to take advantage of all possible opportunities to renew the production programme, the company should ensure appropriate internal and external integration in the management of the process.

Financial Factors Influencing the Development of Product Innovations in Polish Small and Medium Enterprises

University of Information Technology and Management in Rzeszow

Studia Humana

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The development of product innovations in small and medium enterprises is determined mainly by their financial capabilities. These enterprises usually...

Financial Factors Influencing the Development of Product Innovations in Polish Small and Medium Enterprises

Published Online: Jul 15, 2021

Page range: 42 - 52

DOI: https://doi.org/10.2478/sh-2021-0017

Keywords
product innovations, research and development (R & D), financing

© 2021 Stanisław Ślusarczyk, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Financial Factors Influencing the Development of Product Innovations in Polish Small and Medium Enterprises

Published Online: Jul 15, 2021

Page range: 42 - 52

DOI: https://doi.org/10.2478/sh-2021-0017

Keywordsproduct innovations, research and development (R & D), financing

© 2021 Stanisław Ślusarczyk, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
product innovations, research and development (R & D), financing