The impact of technological innovations on the competitiveness of the telematic companies


Innovation is an important driver of economic progress, benefiting consumers, business and the economy as whole. However, innovation companies face high risks because innovation requires a lot of resources, and it is difficult to predict a payback period in advance. This is common for all types of innovation, but especially to technological innovation. One of the least researched technological innovations is telematics, innovative transport monitoring and control technology solutions. Those are widely applied in logistics, car-sharing platforms and the public transport sector. These innovations help to achieve the goals of the companies that buy and install them, but question what impact they have on the competitiveness of the companies that create these innovations remains a matter of debate. To fill this gap, the purpose of this article is to determine the impact of technological innovation on the competitiveness of telematics companies. In pursuit of this goal, the concepts of technological innovation and competitiveness are revealed. The definition of telematics innovation and its significance for the competitiveness of enterprises was also formed. The empirical part discusses the telematics market, provides the analysis of the main competitiveness indicators of 8 telematics companies and their changes, as well as the analysis of the research and development (R&D) costs and the impact of innovations on competitiveness. Applied research methods: a critical analysis of scientific literature, generalization, systematization of data, computation, and comparison of relative indicator, data dispersion indicator, and dynamics indicator, correlation, and regression analysis. The research reveals that creation and development innovation are related to competitiveness of telematics companies. However, excessive investment into innovation no longer generates positive return.

Article in Lithuanian.

Technologinių inovacijų poveikis telematikos įmonių konkurencingumui


Inovacijos yra svarbus ekonominę pažangą skatinantis veiksnys, teikiantis naudos tiek vartotojams, tiek įmonėms, tiek visai ekonomikai. Vis dėlto inovacijas kuriančios įmonės susiduria su didele rizika, nes inovacijoms kurti reikia daug išteklių, tad sunku iš anksto nustatyti atsipirkimo laikotarpį. Tai būdinga visiems inovacijų tipams, bet ypač technologinėms inovacijomis. Viena iš mažai ištirtų technologinių inovacijų yra telematika – novatoriški transporto stebėjimo ir valdymo technologiniai sprendimai, kurie yra plačiai taikomi logistikoje, transporto priemonių dalijimosi platformose ir viešojo transporto sektoriuje. Šios inovacijos padeda pasiekti jas perkančių ir diegiančių kompanijų tikslus, tačiau kokį poveikį jos turi šias naujoves kuriančių įmonių konkurencingumui, vis dar lieka diskusiniu klausimu. Siekiant užpildyti šią spragą, straipsnio tikslas – nustatyti technologinių inovacijų poveikį telematikos įmonių veiklos konkurencingumui. Įgyvendinant šį tikslą, atskleistos technologinių inovacijų ir įmonių konkurencingumo sampratos, aptarta technologinių inovacijų reikšmė įmonių konkurencingumui. Empirinėje dalyje aptarta telematikos rinka, atlikta aštuonių telematikos įmonių pagrindinių konkurencingumą atspindinčių rodiklių ir jų pokyčių analizė, išlaidų mokslinei tiriamajai ir eksperimentinei plėtrai (MTEP) analizė ir įvertintas inovacijų poveikis konkurencingumui. Taikomi šie tyrimo metodai: kritinė mokslinės literatūros analizė, apibendrinimas, duomenų sisteminimas, santykinių rodiklių, duomenų sklaidos rodiklių ir dinamikos rodiklių skaičiavimas, lyginimas, koreliacinė ir porinė regresinė analizė. Tyrimas atskleidė, kad inovacijų kūrimas lemia telematikos įmonių konkurencingumą, tačiau per intensyvus jų srautas teigiamos grąžos nebegeneruoja.

Reikšminiai žodžiai: inovacijos, technologinės inovacijos, MTEP, telematika, konkurencingumas, koreliacinė analizė, porinė regresinė analizė.

Keyword : innovation, technological innovation, R&D, telematics, competitiveness, correlation analysis, regression analysis

How to Cite
Dadelytė, E., & Mačiulytė-Šniukienė, A. (2020). The impact of technological innovations on the competitiveness of the telematic companies. Mokslas – Lietuvos Ateitis / Science – Future of Lithuania, 12.
Published in Issue
Jun 30, 2020
Abstract Views
PDF Downloads
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.


Agenor, P., & Neanidis, K. C. (2015). Innovation, public capital, and growth. Journal of Macroeconomics, 44(3), 252–275.

Akcali, B. Y., & Sismanoglu, E. (2015). Innovation and the effects of Research and Development (R&D) expenditure on growth in some developing and developed countries. Procedia – Social and Behavioral Science, 195, 768–775.

Bi, K., Huang, P., & Ye, H. (2015). Risk identification, evaluation and response of low-carbon technological innovation under the global value chain: A case of the Chinese manufacturing industry. Technological Forecasting and Social Change, 100, 238–248.

Borovska, T., Severilov, P., Severilov, V., & Bevz, I. (2017, September 5-8). Models of production systems sustainable development, based on the meta-model concept. Paper presented at the 12th International Scientific and Technical Conference on Computer Sciences and Information Technologies.

Branscomb, L. M. (2001). Technological innovation. In International encyclopedia of the social & behavioral sciences (pp. 15498–15502). Elsevier.

Braun, D., Reiter, E., & Siddharthan, A. (2015, September). Creating textual driver feedback from telemetric data. Paper presented at the Proceedings of the 15th European Workshop on Natural Language Generation.

Broughel, J., & Thierer, A. (2019). Technological innovation and economic growth: A brief report on the evidence. Mercatus Center at George Mason University, Arlington, VA.

Brusakova, I. A., & Shepelev, R. E. (2016, November 16-18). Innovations in the technique and economy for the digital enterprise. Paper presented at the IEEE 5th Forum Strategic Partnership of Universities and Enterprises of Hi-Tech Branches (Science. Education. Innovations).

Business Dictionary. (n.d.). Competitiveness.

Buzzigoli, L., & Viviani, A. (2009). Firm and system competitiveness: Problems of definition, measurement and analysis. In A. Viviani (Ed.), Firms and system competitiveness in Italy (pp. 11–37). Firenze University Press.

Chatzoglou, P., & Chatzoudes, D. (2018). The role of innovation in building competitive advantages: an empirical investigation. European Journal of Innovation Management, 21(1), 44–69.

Choi, Y., Ye, X., Zhao, L., & Luo, A. C. (2016). Optimizing enterprise risk management: a literature review and critical analysis of the work of Wu and Olson. Annals of Operations Research, 237(1–2), 281–300.

Coad, A., Segarra, A., & Teruel, M. (2016). Innovation and firm growth: does firm age play a role? Research Policy, 45(2), 387– 400.

Cropley, D., & Cropley, A. (2017). Innovation capacity, organisational culture and gender. European Journal of Innovation Management, 20(3), 493–510.

Demirova, S. (2019, March 18-21). Turning knowledge into innovation and innovation into an effective product concept. Paper presented at the International Conference on Creative Business for Smart and Sustainable Growth.

Dhivyasri, G., & Mariappan, R. (2015, March 5-7). Advanced fuel level tracking system using telematic unit. Paper presented at the IEEE International Conference on Electrical, Computer and Communication Technologies.

Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Science, 41(1).

El Bassiti, L., & Ajhound, R. (2016). Towards innovation excellence. In 6th International Conference on Information and Communication Technology for The Muslim World (ICT4M) (pp. 99–104).

European Central Bank. (2017). How does innovation lead to growth?

European Innovation Management Academy. (2016). Innovation management.

Global Top 100 companies by market capitalisation: PwC. (2019).

Godin, B. (2006). The linear model of innovation: The historical construction of an analytical framework. Science, Technology, & Human Values, 31(6), 639–667.

González-Ruiz, J. D., Botero-Botero, S., & Duque-Grisales, E. (2018). Financial eco-innovation as a mechanism for fostering the development of sustainable infrastructure systems. Sustainability, 10(12), 1–19.

Hu, T., & Xie, C. (2016). Competition, innovation, risk-taking, and profitability in the Chinese banking sector: An empirical analysis based on structural equation modelling. Discrete Dynamics in Nature and Society, 2016, 1–10.

Jayashree, P., Hamza, F., El Barachi, M., & Gholami, G. (2019, June 18-21). Inclusion as an enabler to sustainable innovations in smart cities: a multi-level framework. Paper presented at the 4th International Conference on Smart and Sustainable Technologies (SpliTech).

Khalil, O. K. (2017, June 14-16). A study on road accidents in Abu Dhabi implementing a vehicle telematics system to reduce cost, risk and improve safety. Paper presented at the 10th International Conference on Developments in eSystems Engineering (DeSE).

Kirushanth, S., & Kabaso, B. (2018, July 24-26). Telematics and road safety. Paper presented at the 2nd International Conference on Telematics and Future Generation Networks (TAF-GEN).

Kožená, M., & Chládek, T. (2012). Company competitiveness measurement depending on its size and field of activities.
Procedia -Social and Behavioral Sciences, 58, 1085–1090.

Lashmanova, N. V., Brusakova, I. A., Syrovatskaya, O. Y., & Gryaznov, A. Y. (2015, November 11-13). Innovations is as the factor of strengthening of cooperation of high schools and the enterprises. Paper presented at the 4th Forum Strategic Partnership of Universities and Enterprises of Hi-Tech Branches (Science. Education. Innovation).

Li, H. (2016, July 24-27). An empirical research on the relationship of equity incentive and performance of Chinese listed companies. Paper presented at the International Conference on Logistics, Informatics and Service Sciences (LISS).

Mačiulytė-Šniukienė, A., & Montvilaitė, K. (2012). Evaluation of innovations as a labour productivity increasing factor: The case of the European Union countries. Social Research, 4(29), 45–58.

Maradana, R. P., Pradhan, R. P., Dash, S., Gaurav, K., Jayakumer, M., & Chatterjee, D. (2017). Does innovation promote economic growth? Evidence from European countries. Journal of Innovation and Entrepreneurship, 6(1), 1–23.

Meiring, G. A. M., & Myburgh, H. C. (2015). A review of intelligent driving style analysis systems and related artificial intelligence algorithms. Sensors, 15(12), 30653–30682.

Milbergs, E., & Vonortas, N. (2012). Innovation metrics: Measurement to insight. National Innovation Initiative 21st Century Working Group.

Nechaev, A. S., Zakharov, S. V., & Troshina, A. O. (2017, September 24-30). Innovation risk minimization and neutralization methods. Paper presented at the International Conference “Quality Management, Transport and Information Security, Information Technologies” (IT&QM&IS).

OECD. (2005). Oslo manual. Guidelines for collecting and interpreting innovation data (3 ed.). Cedex.

Pabedinskaitė, A. ir Činčikaitė, R. (2017). Kiekybiniai modeliavimo metodai. Iš Porinė koreliacinė analizė (p. 81–88). Technika.

Padilla, R. (2006). Conceptos de competitividad e instrumentos para medirla (pp. 356–390). Comisión Económica para América Latina y el Caribe (CEPAL). Panamá.

Penker, M., & Khoh, S. B. (2018, December 16-19). Cultivating growth and radical innovation success in the fourth industrial revolution with big data analytics. Paper presented at the IEEE International Conference on Industrial Engineering and Engineering Management.

Petrakis, P. E., Kostis, P. C., & Valsamis, D. G. (2015). Innovation and competitiveness: culture as a long-term strategic instrument during the European great recession. Journal of Business Research, 68, 1436–1438.

Pogrebova, O. A., Konnikov, E. A., & Yuldasheva, O. U. (2017, May 24-26). Fuzzy model assessing the index of development of sustainable marketing of the company. Paper presented at the 20th IEEE International Conference on Soft Computing and Measurements (SCM).

Porter, M. E. (1992). Competitive advantage: Creating and sustaining superior performance. PA Consulting Group.

Pradhan, R. P., Arvin, M. B., Hall, J. H., & Nair, M. (2016). Innovation, financial development and economic growth in Eurozone countries. Applied Economics Letters, 23(16), 1141–1144.

Scherer, F. M. (2001). Innovation and technological change, economics of. In International encyclopedia of the social & behavioral sciences (pp. 7530–7536). Elsevier.

Schwab, K. (Ed.). (2018). The global competitiveness report. World Economic forum.

Stoyanova, T., & Angelova, M. (2018, June 11-14). Impact of the internal factors on the competitiveness of business organizations. Paper presented at the International Conference on High Technology for Sustainable Development (HiTech)

Szerb, L., & Terjesen, S. (2010). Measuring the competitiveness of small businesses.

Taherizadeh, S., Novak, B., Komatar, M., & Grobelnik, M. (2018, July 23-27). Real-time data-intensive telematics functionalities at the extreme edge of the network: experience with the PrEstoCloud project. Paper presented at the IEEE 42th Annual Computer Software and Applications Conference (COMP-SAC).

Ungerman, O., Dedkova, J., & Gurinova, K. (2018). The impact of marketing innovation on the competitiveness of enterprises in the context of industry 4.0. Journal of Competitiveness, 10(2), 132–148.

Wahlström, J., Skog, I., & Händel, P. (2015, May). Driving behavior analysis for smartphone-based insurance telematics. Paper presented at the Proceedings of the 2nd Workshop on Physical Analytics.

Wang, C., & Chao, Y. (2018). Research on regional independent innovation and open innovation optimization strategy under innovation driving strategy: taking the biomedical industry of China as an example. Paper presented at the IEEE International Symposium on Innovation and Entrepreneurship (TEMS-ISIE).

Wang, Y., Li, W., & Zou, G. (2015, May 23-25). The construction of knowledge innovation model for strategic alliance of industrial technology innovation. Paper presented at the 27th Chinese Control and Decision Conference (2015 CCDC).

Zelga, K. (2017). The importance of competition and enterprise competitiveness. World Scientific News, 72, 301–306.

Zhang, Y. (2015, December 19-20). The research of the enterprise financial model based on information entropy and correlation model reorganization theory. Paper presented at the International Conference on Intelligent Transportation, Big Data and Smart City.

Zorrilla, D. M. N., Gracia, T. J. H., Gracia, J. F. H., Duran, J. G. I., & Sevilla, J. A. C. (2014). Relevance of technological innovation in the business competitiveness of medium enterprises in Hidalgo State. European Scientific Journal, 10(16), 356–372.