Entrepreneurship and Innovation in the Polish Industry

JAN ZWOLAK

Faculty of Economic Sciences

Pope John Paul II State School of Higher Education in Biała Podlaska

21-500 Biała Podlaska, ul. Sidorska 95/97

POLAND

Abstract:- Entrepreneurship is a process in which goals or tasks are set at one’s own initiative, whereby no

patents (inventors' activities) generated within the Polish industry in the years 2015-2017. The hypothesis is

that patents (inventors' activities) get reinforced with process and product innovation expenditures (innovators’

activities) employed in the process of growth of the number of enterprises (entrepreneurship) in industry, as

well as the overall efficiency of expenditures and technologies (patents) in the Polish industry over the course

of the researched years. Conducted studies have confirmed the above hypothesis. In addition, the research

carried out has shown that patents (inventors 'activities) have supplemented the share (elasticity) of process and

product innovation (innovators' activities) by 10% in the increase in the number of enterprises

(entrepreneurship) as observed in industry. This share is transferred from the supply element to that of demand.

Key-Words:- entrepreneurship, process and product innovative expenditure, inventions and patents, growth

services is related to its propensity. It is consequent

to a conscious pursuit of changes in the production

process or concerning the nature of the product

(active innovation), while it may also be forced by

the environment or market competition (passive

innovation).

Propensity to innovation is also associated with

readiness to accept risks and tensions that

accompany the course of process or product

changes, with the simultaneous need to undertake

The transfer of innovation is related to the

process as a result of which the range of invention

implementation (patent) in the economy is

expanding. We are rather dealing here with a

diffusion of innovation. It involves extending the

use of innovation within one enterprise (the use of

regression interdependencies occurring between

these categories in the Polish industry.

The aim of the research is to determine the

regression relationships between the number of

enterprises (entrepreneurship) and the expenditure

on process and product innovation (innovators'

activity) as well as the number of inventions

Constituting the foundation of the research is the

hypothesis that patents (inventors' activities) are

reinforced with the expenditures on process and

product innovation (activities of innovators) in the

course of the process of increasing the number of

enterprises (entrepreneurship) in industry and with

the overall efficiency of inputs and technologies

(patents) observed in the Polish industry in the

researched years.

Section 2 presents a selection of theoretical and

2 Literature Review

The research conducted by [2] Hughes and Mina

(2010) indicates that patent in enterprises is an

increasingly important factor in the environment of

innovation provides [5]. The patent serves the

markets of highly profitable economies [6]. The

quality of patents itself ought to be patented (high-

quality patents). This, in turn, implicates the

increase in the responsibility for creating new

products and new ventures [7].

The information on the grant should be known

prior to the patent being issued [8]. At the same

time, business methods should be separated from

patents [9].

patents are reviewed with respect to the possible

of its protection [30]. This leads to harmonisation of

growth and ensures positive structural changes in

industry [31]. The industry has the greatest potential

for implementing innovations. It boosts the

efficiency of innovation and integrates the

remaining sectors of the economy. It determines the

implementation of innovations therein and creates

(entrepreneurship) but it also significantly

contributes to the national economic growth [34].

Competition can affect the implementation of

various technical patent standards within the same

industry [35]. Joining patents for technology

substitution can limit competition and discourage

innovation [36]. Combined innovation adopts a

central position in the economic growth [37]. Small

countries (like, for instance, Estonia) should

increase its public R&D and innovation expenditure,

Fig. 1: Elements of the innovation process growth model

In this model, one can distinguish the endogenous

growth model due to the role it plays in the field of

innovation. We can distinguish the activity of the

inventor (patent) and, separately, the activity of the

innovator [42]. We are dealing here with a two-way

relationship between R&D expenditure and

This model provides a general model for the

endogenous growth of balance that separates the

invention from innovation, whereby the excess of

knowledge is estimated simultaneously between

these two activities. The economic growth provides

a dynamic complement to these activities. The

process of economic growth serves to mutually

innovative value sold. This indicates entrepreneurial

rationalisation of the composition of the elements of

the economic system or the industry sector in

question. This rationalisation is the primary phase

relative to the main phase of entrepreneurial and

economic activity. The growth rate [44] within the

extreme range, within the scope of process and

product innovation expenditure as well as the

spending employed for inventions and patents per

enterprise, indicates the degree of activity of

correlation, indicates the possibilities of their

balancing in conducted entrepreneurship within

industry. This constitutes the economic value of

entrepreneurship [45].

Table 1. Parameters of the features of innovative variables within the industry in Poland in the years 2015-2017

than the calculated ones, however, there are no

grounds to reject the hypothesis of homoscedasticity

of random components.

inventors) (X3) in the Polish industry in the years

2015-2017. In both models, the variability in the

number of enterprises (entrepreneurship) is

explained by the outlays on process and product

innovation, the number of inventions and the

number of patents generated within the industry:

84% and 85%, respectively. An explanation of high

variability has thus been obtained. The volatility is

not explained by the participation of other variables

that are not the subject of the study. The strength of

values of the regression coefficients, whereby the

level of significance of the regression coefficients in

both models ranges from 0.00 to 0.02. A statistical

evaluation of the regression coefficients indicates

the possibility of their use in the econometric

and product innovation in the process of growth in

industry. As evidenced by a comparison of the sum

of elasticity in the models, the elasticity of

enterprises (entrepreneurship) is higher in the first

model by 0.065. However, upon comparing the

elasticity of enterprises with respect to innovative

process and product outlays, the elasticity is higher

delogarithmising shows that the constant term in the

second model is 35.3% higher. This indicates that

the overall efficiency of the number of enterprises

(entrepreneurship) shaped by the activities of

innovators – and the activities of inventors in the

second model – increases entrepreneurship by over

a third of its growth (35.3%). Research shows that

patents (inventors' activities) boost the activity of

innovators, and simultaneously, the overall

effectiveness of entrepreneurship shaped by these

product innovation expenditure (activity of

Table 3. Marginal and average process and product innovation expenditure in the Polish industry in the years

2015 - 2017

Source: Author’s own calculations based on the data presented in tables 1 and 2.

The data presented in Table 3 shows that

marginal process and product innovation

expenditures (marginal activity of innovators) in

entrepreneurship is incrementing at an increasingly

of innovators) in their middle range constitute 80%

of the average level centre. This means that the

marginal value is approaching the average one at an

even faster rate. The marginal activity of innovators

Table 5. Marginal and average inventions in the Polish industry in the years 2015 - 2017

Source: Author’s own calculations based on the data presented in tables 1 and 2.

As indicated by the data presented in Table 5

(the first model), the marginal number of inventions

(marginal activity of inventors) in their middle

range constitutes 86% of the average level centre.

slowest rate, while entrepreneurship is incrementing even faster.

Table 6. Marginal and average patents in the Polish industry in the years 2015 - 2017 (second regression)

Source: Author’s own calculations based on the data presented in tables 1 and 2.

the average number to fall, albeit at a slower pace;

however, entrepreneurship (number of enterprises)

is incrementing, but its growth rate tends to zero.

This indicates the need to modernise these patents to

Table 7. Average growth rate of the number of enterprises (Y1) within the range of the value of process and

within the industry in Poland in the years 2015-2017; %

Source: Author's own calculations based on the data presented in tables 3, 4, 5 and 6 with the help of dynamics

with a variable basis and a geometric mean.

The comparison of the data presented in Table 7

indicates that with the same average growth rate of

process and product innovation expenditure (23.8%)

by 3 percentage points (26%). This faster average

growth rate by 3 percentage points of the number of

patents causes the augmentation of the average

growth rate of the marginal and average number of

patents by over 5 percentage points. This implies a

better application of the number of patents in the

average industry enterprise over the studied period.

(number of enterprises) on the number of patents

(inventors' activities). The number of enterprises

(entrepreneurship) (Y1) can be expressed by a

single-factor Cobb-Douglas power function (Y1 = a

* X3b).

The maximum number of enterprises

(entrepreneurship) is achieved when the subsequent

increase in patents (dX3) no longer brings an

The industry is interested in whether the cost

(expenditure expressed in monetary means) of

subsequent patents will bring an additional effect of

entrepreneurship (number of enterprises). This

answer can be obtained using the marginal calculus.

If the growth in entrepreneurship is presented as the

cost of the number of patents (PY1), similarly to the

cost of the number of patents (PX3), then the optimal

as it results in a decline in entrepreneurship (number

of enterprises). This interdependency can be

expressed as follows:

The marginal calculus serves to optimise the

number of patents, and it is more complex, as the

effects of patents last for several years.

6 Conclusion

constitute an instrument of structural transformation