Innovation as a Significant Competitiveness Stimulant for Enterprises and Regions

Abstract

Contemporary businesses and regions are distinguished by a continuing need to adapt to changes. In this regard, innovation is crucial for the development and competitiveness of regions and businesses. The main objective of this paper is to emphasise the importance of innovation as a significant factor stimulating the increase and maintenance of competitive advantage of both regions and businesses (in the face of dynamic business environment). The paper is based on a comparative analysis of conceptual approaches, mainly to regional development. The structure of the paper is as follows: the first section takes a glance at the literature on changes in business environment. This section provides also a discussion on regional and business competitiveness. The second section covers competiveness factors influencing regional and enterprise development. The next section discusses innovation determinants which affect both regions and businesses in the light of changes and the need to remain competitive. The originality of this paper lies in emphasising the impact of innovation on mutual actions taken by businesses and regions to maintain or increase competiveness. It seems important to underline the linkage between regional development and enterprise development in the setting of changing business environment. The findings may be useful for regions and enterprises in the course of adaptation to changes. Future studies should focus on an empirical verification of the impact of particular innovation factors on fluctuations in regional and enterprise competitiveness.

Keywords

• innovation
• regional development
• competitiveness of businesses