Innovation strategy and its imapact on company growth

Abstract

The paper deals with the effects which might have innovation strategy on company growth. The paper also confronts business strategy with innovation strategy and indicates certain disparity between these types of strategies. It indicates that despite having viable business strategy in place, some companies are still puzzled with the incorporation of innovation and innovation processes into corporate strategy. The paper examines how intensively the innovation influence both Real Company Growth (RGR) and Sustainable Company Growth (SGR). By means of Case Study it is exemplified how the company can manage its RGR and SGR through process and organizational innovation on one hand and product and marketing innovation on the other hand. It was found out that the former boosts company growth especially through reduction of the costs and facilitation of processes while the latter drives the company growth preferably through sales increase. Both approaches may complement on each other and generate synergic effects. Both types of growth are compared with the development of real GDP which was the benchmark for the assessment of the innovation process effectiveness.