Influence of Selected Determinants of the Knowledge Production Function on Innovation Performance in Region

Abstract

Global production of knowledge is essential for innovation. To remain competitive and profitable, firms must improve their innovation performance continuously. Knowledge is a crucial driver of innovation, and universities, firms, and governments engage in various activities to manage, share, and transfer knowledge effectively. Knowledge-production function comprises several knowledgebased determinants. Although determinants of knowledge production function have significantly contributed to promoting innovation performance in the EU, few studies have examined the context they influence the relationship. This study addresses the gap in current literature by (i) examining the direct influence of knowledge-based determinants (knowledge management, knowledge networks and knowledge diffusion) on innovation performance among moderate and emerging EU countries and (ii) assess the context in which factors in the business environment moderates the relationship. Furthermore, this study proposes the best practices and strategies used by firms in moderate and emerging innovative EU countries to enhance firm innovation performance.