Abstract

The literature review reveals diverging views on the influence of economic cycles on the innovation activity of companies. This article is a voice in this discussion. It provides, empirically verified arguments, allowing one to support or reject the accepted research hypotheses. These assume that: (1) The expectations with respect to income dynamics play a more important role in stimulating innovation activity than the dynamics of (actual) income levels; and (2) Different economic structures and levels of technological development in the chosen Balkan states, despite the geographic proximity of these states and similarity in economic situation, influence the geographic differentiation in terms of the innovation activity. The obtained research results show a greater differentiation in terms of actions of companies than previously thought. It has been confirmed that when the companies sense an improvement in economic situation, their innovation activity increases, this is, however, accompanied by a noticeable anticipatory element. It turned out that the expectations regarding an improvement in economic conditions have an additional stimulating effect on such an activity, whereas the recession itself, as well as the expectations in that respect, have a de-stimulating effect. It turned out that the expectations with regard to the future economic situation are the most important here, a factor that has been neglected so far.

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