Innovation as a Tool for Sustainable Development of EU Countries

Abstract

Innovation creates opportunities for starting new businesses, creating new jobs and contributing to economic development. The article explores the role of innovation and its influence on sustainable economic development. Innovation indicators are examined for different EU countries and disparities in the development of innovation systems are highlighted. The research was conducted based on data provided by the Global Innovation Index and Eurostat across the 27 EU countries. The article focuses on the evolution of the Summary Innovation Index in different EU countries. This index represents the average of 32 indicators in the fields of economy, business environment, governance and public policies, climate change and demographic dynamics. The comparative analysis of the innovation index allowed to highlight innovation leaders and underperforming states, providing useful information to decision-makers to improve the innovation potential of EU countries. In conclusion, it is emphasized that innovation is the engine of sustainable growth and companies must develop innovation strategies in accordance with international and national regulations. Innovation remains a primary factor for the competitiveness of countries and for sustainable economic development. UDC: 001.895:338.1(4EU); JEL: O31,O52