INNOVATION-INTERNATIONALISATION LOCI IN MARKET TRANSITION OF INFORMATION AND TELECOMUNICATIONS FIRMS

The purpose of this study is to analyse differences in a small open transitional economy’s loci on innovation and internationalisation pace. Specifically, the effect of absorptive capacity, product and service innovation, and institutional support on internationalisation pace differences between firms founded in the command and capitalist market systems. Geographical setting of this study is the Republic of Croatia, which underwent a transition from a command to a capitalist market system in the early 1990s. Its information and telecommunications firms were pillars of innovation. The survey on discusses theoretical and practical implications of the identified findings with respect to the small open transitional economy.