Impact of Innovation Outsourcing on the Financial Situation of Companies in the Czech Republic

This paper contributes to the theory of firm by revealing an advantage for company growth that is based on mixed (internal and external) involvement. Innovation external activities, in the form of cooperation and external acquisition of knowledge and R&D, are analysed using regression analysis in four Community Innovation Surveys (2008, 2010, 2012, and 2014) in the Czech Republic. Cooperation proved to be beneficial to total amount of R&D expenditures per employees. There is no additional effect of cooperation to sales of innovated goods. There is an inverse U-shaped relationship between R&D expenditures per employee and the ratio of external to internal R&D expenditures. The optimal ratio that maximizes the R&D expenditures per employee is 282.4 to one. The optimal ratio that maximizes sales of innovated production per employee is 70.1 to one.