Innovation Activities of Public Organizations in the Czech Republic between 2008 and 2014

The paper analyses innovation activities of public sector organizations between 2008 and 2014. This paper estimates the innovation process using three steps. In the first step, the probability to innovate is estimated. In the second step, the log of R&D expenditures per one employee is estimated. In the third step, innovation output is analyzed. Results suggest that size depends positively on the decision to innovate like in the case of private companies. The further market orientation contributes to the higher probability to innovate but not in the case of the public sector. Also, the probability to innovate in the public sector does not depend on the technology level, but it does in case of the knowledge level of the industry. The results, for the second step, suggest that the R&D expenditures do not negatively depend on the company size like in the case of private companies. The results, for the third step, suggest that the sales from innovating goods and services do not depend on the company size and the input/output ration is not statistically significant. The innovation behavior of enterprises in the public sector differs substantially.