Determinants of territorial innovations in the macroregion of Visegrád countries: a seemingly unrelated probit analysis

Technological innovations and research and development (R&D) are known to have spillover effects on territorial growth and resilience. Therefore, analysing the relationship between technological innovations and R&D could provide significant contributions to policies and strategies for regional growth. Despite the importance of technological innovations and R&D to regional growth and resilience, fewer studies in transitional countries such as the Visegrad Four have focused on examining these relationships. This paper therefore specifically aims at simultaneously analysing the determinants influencing technological innovations and R&D in Visegrad countries by employing the bivariate probit model. The study also finds that foreign technologies, ICT technologies, external knowledge, membership of economic and business associations, and patents positively influence technological innovations and R&D. Contrary, we find that fiscal policies and corruption were not significant factors capable of driving technological innovations and R&D in these countries. Capital cities in these macroregions of Visegrad countries are likely to influence R&D activities. The main policy implication of the research is that policymakers in the Visegrad Group aiming to improve and sustain territorial innovations should consider forging extra-local linkages as well as investments in ICT technologies and intellectual property rights.