ROLE OF INNOVATION IN ENTREPRENEURSHIP DEVELOPMENT

Abstract

The strength of researchers and entrepreneurs is needed in order to overcome technological problems and to develop products with a great competitive advantage. This would achieve international market success. Success is achieved by the support of scientists and research institutions due to the nature of people and their efforts, not because of the innovation policy itself. The assumption is that companies should use external and internal ideas, as internal and external channels, to improve innovation and market potential. Companies promote their own innovative activities by establishing a new business model. Companies cooperate with other participants on the market, exchange ideas and satisfy the needs of consumers in a better way. Companies have to work a lot on improving internal structures of knowledge and technology, i.e., on improving their innovative capacity. By establishing an appropriate knowledge base and considering innovative possibilities, they can intensively deal with connecting to external sources of knowledge and technologies. By combining internal and external sources, they create new value and thus improve their own innovation culture.