4. Results
4.1 The Principal Factors
The result obtained from calculating the mean score of each of the 17 factor allocated by the
firm’s directors are presented in Table 1 below. The results of the inter-regional analysis using
the Mann-Whitney a-parametric test are also presented in the Table.
It is clear evidence from the results that most of all the lack of capital resources and the high
level of risk involved in the investment on innovation, reduces the capability of the firm to
engage in innovation. This result is valid also when dividing the firms according to branch
affiliation (see in details in the next section) or location. These kind of limitations could be
handle more successfully by public policy than others, directed in offering capital subsidy or
attract investments of venture capital to the region.
The five principle factors that show the highest mean score present those that ascribed by the
entrepreneurs' order of priorities (presented in Table 1) as hindered mostly the realization of
innovation in their firm. In accordance the most significant obstacles related to excessive
perceived risk, lack of sufficient financial resources and prohibitive cost. The last barrier in
this category related to the lack of skilled personal.
The next group of factors ascribed by medium level of significance includes supportive
factors where their absence hindering the appearance of innovation. These are: the lack of
technological knowledge and the lack of information on market opportunities. This group
includes also uncertainty variable, for example those that involved with the lack of market
demand for the new product or process, or the uncertainty that involved in the timing of
innovation.
All the others eight factors from the presented list hardly influence the ability to innovate. The
insignificant that ascribed to the lack of R&D services as hindering the ability of the firms to
innovate was expected. The important role that R&D services play in contributing to the
engagement of the firms in developing innovation documented in different studies (see for
example: Frenkel 2000; Frenkel et al., 2000, 2001; Roper and Love, 1996; Dosi, 1988;
Rosenberg, 1985; Nelson, 1986).