Innovation intensity in Polish manufacturing firms and CEO characteristics

Purpose: This paper investigates the relationship between observable managerial characteristics and investment in innovation among Polish manufacturing enterprises.Design/methodology/approach: The study employs the Upper Echelons Theory (UET) to analyse the impact of managerial characteristics on innovation investment in Polish manufacturing firms.Based on data from 1049 enterprises, it uses the Heckman selection model to correct for sample selection bias.This approach examines both the decision to invest and its extent, focusing on the Polish manufacturing sector. Findings:The findings indicate that CEOs' demographic characteristics, such as age group, gender, and financial benefits, significantly impact R&D&I intensity.However, the influence of specific CEO traits varies across small and medium-sized enterprises (SMEs), highlighting differences in how managerial attributes shape innovation investment depending on firm size. Research limitations/implications:The study is limited by data availability on CEOs, focusing only on measurable and observable traits while excluding personality traits due to a lack of information.Future research could address this gap by examining how psychological characteristics influence CEO's innovation-related decisions.Practical implications: Polish manufacturing firms, especially those led by professional managers, should implement financial incentives to promote innovation.HR departments should consider CEO profiles in leadership development, while policymakers can design incentive schemes to boost R&D&I engagement, enhancing competitiveness and economic growth.Social implications: Encouraging innovation through leadership and incentives can drive technological advancement, job creation, and economic development.Originality/value: This study offers new insights into the link between CEO characteristics, financial benefits, and innovation intensity, particularly in Polish manufacturing firms.It contributes to corporate governance and innovation management literature, benefiting business practitioners, policymakers, and researchers.