Key differences in perceiving innovation between businesses that see the strategic importance of innovation and those that only claim to be innovative

Abstract

Changes in the business environment, caused by the transition to a knowledge economy, highlight the importance of innovation in enterprises. Innovation is not considered solely in terms of technology and investment in research and development, but also in business processes, services and strategies. Development perspectives on innovation and its present shape best describe the transition from a closed to an open innovation model. Open innovation is mainly used in large enterprises, given their existing relationships with external entities. SMEs, on the other hand show distrust in sharing knowledge and know-how, because of the potential abuse by competi tors. This paper focuses on the characteristics of innovative businesses, with a comparative analysis of innovative enterprises and those that only consider themselves as innovative. The study also indicates the different understanding of the notion of innovation between those that see the strategic importance of innovation and those that do not.Keywords: Innovation, open innovation, determinants of innovation.