Innovativeness as a driving force and an opportunity for economic growth

Abstract

Background: The subject of the article’s research is the broadly understood idea that innovation contributes to economic growth. Economic growth is one of the most important research issues undertaken in the scope of economic sciences. Modern phenomena and socio-economic trends indicate that innovation as an element conditioning the economic growth of countries. We are forced to pay attention to factors such as knowledge, experience, creativity, and what binds them together, innovations being the products of creative effort. Innovative activities are designed to support the well-being of citizens and society, as well as to provide industry and enterprises with a competitive position on both domestic and international markets. Societies need innovation to achieve a high quality of life: new products, services, technologies, and organization systems. New products are often modelled on known ones, through specific changes, improvements, or simplifications of own or foreign products whereas new ideas, in general, have their source in knowledge.1 \nResearch purpose: The aim of this article is an attempt to answer the research question: “why innovation is a key factor in economic development and growth?” To start with, the pioneering definition of J. Schumpeter regarding innovation in economy was reviewed, by i.a. Ph. Kotler, M.E. Porter or R.W. Griffin and selected Polish scientists. The following subchapters present types of innovation and the role of innovation processes in the modern economy, as well as results of studies convincing of the significant role of innovativeness in the economy. \nMethods: Literature analysis was used as the research method. The first part reviews the terms of innovation and innovativeness. \nConclusions: The following conclusions emerge from the article: a country’s economy achievesa higher economic growth, the better it uses the resources at its disposal, such as: natural conditions, financial resources, material capital created by people, and those to which increasing importance is attached, i.e. knowledge resources: patents, scientific and expert support, human resources, skills, creative potential as well as cultural capital, meaning attitudes and values related to in\xadnovation. Enterprises, through innovations, improve and update production processes, increase productivity, efficiency, and quality of work, which translates into higher employee remuneration. An innovative enterprise, increasing the quality of its products and the overall efficiency as well as effectiveness of its operations by improving organization and working methods, becomes more competitive on the market.