engleski

Paths to inspire development of a knowledge-based industry in the transitional economy

This paper examines how intangible assets and cross-regional differences affect the revenue of the knowledge–based activities. A multilayer perceptron (MLP) analysis was conducted for 11 information technology activities in the Republic of Croatia for the period between 2002 and 2007 comprising 1.062 data. R&D expenditure, intellectual property rights, goodwill, other unclassified intangible assets and regions predict the change in revenues. The results show that the intangible assets and regional differences explain variations in revenues. The best predictor of the activity’s revenue performance is the value of activity’s intellectual property rights. The unit of analysis is the information technology activity within a county which limits the firm specific comparisons. Future research should incorporate firm level comparisons and a panel analysis in order to confirm the relationships provided by the MLP analysis. The findings suggest the strong impact of formal intellectual property rights protection by portraying regional discrepancies. These findings enable fostering innovation in the knowledge-based IT sector thereby providing recommendations for the developments of other sectors. This is especially meaningful for countries such as the Republic of Croatia, a new EU member state, which is experiencing continuous economic transition and which companies perceive formal intellectual property protection as less significant.

Intangible assets; Intellectual property rights; Regional development; Information Technology

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