INNOVATION OF THE ECONOMY AS A KEY DETERMINANT OF ECONOMIC DEVELOPMENT

The contemporary world is painted with constant changes, in which the key to economic success lies in the ability to understand them and to optimally adapt to the new business environment. Under conditions where changes are gaining more and more intensity, the condition for the development of every economy becomes precisely innovation. Innovation is a significant factor in the development of the economy and society. As a fundamental driver of the growth of the modern economy, innovation is closely related to the development of science and the creation of new knowledge that is being developed, materialized and applied through innovations through the innovation process. The development of the economy is precisely determined by the ability to create, transfer, apply, and commercialize new knowledge through innovation. The subject of this paper is innovative economies that adapt faster and more successfully to changes in a dynamic environment, more effectively solve social challenges, change the economic structure faster and more successfully and create a viable competitive advantage. The aim of this paper is to point out that the improvement of innovation is a key factor in building an economy and a knowledge-based society, whether it’s developed or developing countries.