Changes in the Nature of Innovation Processes and International Competitiveness of the Region After the Covid-19 Crisis: The Case of Podlaskie Voivodeship

Abstract

Abstract Technological structure arises as a consequence of innovation processes, encompassing R&D activities, implementations, as well as diffusion. Innovation processes influence technological competitiveness by linking changes in market shares at home and abroad with their technological potential. Increased productivity resulting from higher innovativeness combined with increased technological investments result in changes in relative unit operating costs and higher demand for more technologically advanced products, thus determining the dynamics of economic development. The aim of this study is to analyse the course of determinants of innovation processes and the level of international competitiveness of regions after the COVID-19 crisis, including especially Podlaskie Voivodeship. Regions are classified into three types of exposure (low, medium, high) and crossed with three degrees of risk sensitivity for the regional economy. Podlaskie Voivodeship has medium exposure and lower sensitivity to pandemic crises. Regions with relatively high sensitivity and exposure to COVID-19 lockdowns were motivated to make greater changes in business processes. Podlaskie Voivodeship relies highly on foreign trade, which is why the COVID-19 crisis, the war in Ukraine and limited contacts with Poland’s eastern border have negatively affected the region’s innovation. The analysis shows that the establishment of competitive advantages based on the effects of COVID-19 crises should be expanded by regions with medium or high sensitivity to lockdowns.