Networking theory of innovation in practice – The Hungarian case J., MATE BALOGH J., TOROK A. (2018): Networking theory of innovation in practice – The Hungarian case. Agric. Econ. – Czech, 64: 536-545.
download PDF

According to the European Innovation Scoreboard (2017) report, Hungary’s summarised innovation score is 67.4 against the EU28 average of 102. This implies that the Hungarian economy has got rather serious disadvantages in the European Union community. This statement is more pronounced in the case of the food industry. From an innovation point of view food industry is seen as a slow one, which is lagging behind the technology pushed possibilities, but sometimes behind the customers’ desires and requirements as well. In our research, we determine why the food companies in Hungary do not engage in innovation activities and if they do so, what are the main drivers of their innovation performance? We use the Community Innovation Survey (CIS 2012a) data and employ double hurdle estimation because of the nature of the innovation distribution. This method also helps in overcoming the selection bias problem, which necessarily occurs in this situation. Results prove that networking scope as well as networking intensity, play an important role in explaining innovation performance. The size and market obstacles are also significant factors.

Aissaoui S. (2014): A double–hurdle model for innovative performance: the role of university-industry collaborations. International Journal of Innovation and Applied Studies, 9: 1087–1096.
Ajzen I., Fishbein M. (1980): Understanding Attitudes and Predicting Social Behaviour. Englewood Cliffs, NJ, Prentice-Hall.
Aschhloff B., Schmidt T. (2008): Empirical evidence on the success of R&D cooperation – Happy together? Review of Industrial Organization, 33: 41–62.
Baregheh Anahita, Rowley Jennifer, Sambrook Sally, Davies Daffyd (2012): Innovation in food sector SMEs. Journal of Small Business and Enterprise Development, 19, 300-321
Belberdos R., Carree M., Diederen B., Lokshin B., Veugelers R. (2004): Heterogeneity in R&D cooperation strategies. International Journal of Industrial Organization, 22: 1237–1263.
Buchmann T., Pyka A. (2012a): The Evolution of Innovation Networks: The Case of the German Automotive Industry. FZID Discussion Papers No. 70–2013. University of Hohenheim, Center for Research on Innovation and Services (FZID). Available at: (accessed Nov, 2017).
Buchmann T., Pyka A. (2012b): Innovation networks. In: Dietrich M., Krafft J., Elgar E. (eds): Handbook on the Economics and Theory of the Firm. Edward Elgar Publishing Limited Cheltenham: 466–484.
Chesbrough H. (2003): Open Innovation. Harvard University Press: Cambridge, MA.
CIS (2012a): Data of Community Innovation Survey of the European Union. Conducted in Hungary, 2012. Eurostat, European Union.
CIS (2012b): The Community Innovation Survey 2012. The harmonised survey questionnaire, July 23, 2012. Eurostat, European Union. Available at (accessed Nov, 2017).
Colurcio M., Russo-Spena T. (2013): Collaborative Innovation – A Focus on Food SMES in Agricultural and Biological Sciences. Chapter Food Industry, January 16, 2013. INTECH. Available at (accessed Nov, 2017).
Cragg John G. (1971): Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods. Econometrica, 39, 829-
Dyer Jeffrey H., Nobeoka Kentaro (2000): Creating and managing a high-performance knowledge-sharing network: the Toyota case. Strategic Management Journal, 21, 345-367<345::AID-SMJ96>3.0.CO;2-N
Dyer Jeffrey H., Singh Harbir (1998): The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage. Academy of Management Review, 23, 660-679
Edwards Tim, Delbridge Rick, Munday Max (2005): Understanding innovation in small and medium-sized enterprises: a process manifest. Technovation, 25, 1119-1127
EFOSZ (2016): Hungarian National Association of food processors. EFOSZ, Hungary. Available at (accessed Nov, 2017).
European Innovation Scoreboard (2017): European Innovation Scoreboard – Report. European Commission. Available at: (accessed Nov, 2017).
Eurostat (2018): Methodological working papers NACE Rev. 2 Statistical classification of economic activities in the European Community. Office for Official Publications of the European Communities, Luxembourg. Available at: (accessed May, 2018).
Fernandes C.I., Ferreira J.J.M., Raposo M.L. (2013): Drivers to Firm Innovation and their Effects on Performance: An International Comparison. MPRA Paper No. 46776, 17 May 2013. NECE – Research Unit, University of Beira Interior and NECE. Available at: (accessed May 2018).
Fertő I. (2016): The influence of external technology sources on the performance of Hungarian food economy. In: Proceedings EAAE 152nd Seminar on Emerging Technologies and the Development of Agriculture, Novi Sad, Sept 30–Aug 1, 2016.
Caiazza, Tiziana Volpe, John L. Sta Rosa, Fertő Imre, Molnár Adrienn, Tóth József (2016): Borderless ideas – open innovation in the Hungarian food chain. British Food Journal, 118, 1494-1515
Fishbein M., Ajzen I. (1975): Belief, Attitude, Intention, and Behaviour: An Introduction to Theory and Research. MA: Addison-Wesley, Reading.
Gellynck Xavier, Kühne Bianka (2008): Innovation and collaboration in traditional food chain networks. Journal on Chain and Network Science, 8, 121-129
Gellynck X., Kühne B. (2010): Horizontal and vertical networks for innovation in the traditional food sector. International Journal of Food System Dynamics, 2: 123–132.
Gilsing Victor A., Nooteboom Bart (): Density and Strength of Ties in Innovation Networks: An Analysis of Multi-Media and Biotechnology. SSRN Electronic Journal, , -
Girma S.H., Hanley A. (2009): R&D and exporting: a comparison of British and Irish firms. Review of World Economics, 144: 750–773.
Indarti N., Postma T. (2013): Effect of networks on product innovation: Empirical evidence from Indonesian SMEs Journal of Innovation Management, 1: 140–158. Available at: (accessed Nov, 2017).
Chen Jin, Chen Yufen, Vanhaverbeke Wim (2011): The influence of scope, depth, and orientation of external technology sources on the innovative performance of Chinese firms. Technovation, 31, 362-373
Laursen Keld, Salter Ammon (2006): Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal, 27, 131-150
Leenders R.T.A., Gabbay S.M. (1999): The structure of advantage and disadvantage. In: Leenders R.T.A., Gabbay S.M. (eds): Corporate Social Capital and Liability. Kluwer, New York: 1–16.
Levinson Nanette S., Asahi Minoru (1995): Cross-national alliances and interorganizational learning. Organizational Dynamics, 24, 50-63
Mansfield E. (1996): The modern university: contributor to industrial innovation and recipient of industrial R&D support. Research Policy, 25: 1047–1058.
Menrad K. (2001): Innovations at the borderline of food, nutrition and health in Germany – A systems’ theory approach. Agrarwirtschaft, 50: 331–341.
Podolny Joel M., Page Karen L. (1998): Network Forms of Organization. Annual Review of Sociology, 24, 57-76
Pyka Andreas (2002): Innovation networks in economics: from the incentive‐based to the knowledge‐based approaches. European Journal of Innovation Management, 5, 152-163
Rampersad G., Quester P., Troshani I. (2010): Examining network factors: commitment, trust, coordination and harmony. Journal of Business & Industrial Marketing, 25: 487–500.
Rothwell Roy (1991): External networking and innovation in small and medium-sized manufacturing firms in Europe. Technovation, 11, 93-112
Rothwell R., Dodgson M. (1994): Innovation and size of firm. In: Dodgson M. (ed.): Handbook of Industrial Innovation. Edward Elgar Publishing Limited, Aldershot: 310–324.
Schumpeter J.A. (1942): Capitalism, Socialism and Democracy. Harper, New York.
Sirelli G. (2000): Innovation and firm performance, summary of session C. In: Proceedings Conference Innovation and Enterprise Creation: Statistics and indicators, France, Nov 23–24, 2000.
Sneep A.G. (1994): Innovation management in the Dutch agro/food industry. Thesis Publishers, Amsterdam.
Stata User’s Guide Release 15 (2017): Stata User’s Guide Release 14. Available at (accessed Nov, 2017).
Traill B., Grunert G.K. (1997): Product and Process Innovation in the Food Industry. Chapman & Hall, London.
Vanhaverbeke W., Cloodt M. (2006): Open innovation in value networks. In: Chesbrough H., Vanhaverbeke W., West J. (eds): Open Innovation: Researching a New Paradigm. Oxford University Press, New York.
Vicente Margarida, Abrantes José Luís, Teixeira Mário Sérgio (2015): Measuring innovation capability in exporting firms: the INNOVSCALE. International Marketing Review, 32, 29-51
Wernerfelt Birger (1984): A resource-based view of the firm. Strategic Management Journal, 5, 171-180
Zeng S.X., Xie X.M., Tam C.M. (2010): Relationship between cooperation networks and innovation performance of SMEs. Technovation, 30, 181-194
download PDF

© 2019 Czech Academy of Agricultural Sciences