Importance of Innovation in the Context of Changes Arising from Economic Globalization

This article present the results of the research conducted in the direction of the role of innovation in the current economic globalization. In today's highly dynamic and competitive business environment, firms are exposed to strict challenges with meeting the ever-increasing market and customer needs and expectations. In order to ensure the competiveness and success of the organization managers need to accept innovation as a key element for the organization. The aim of this paper is to highlight the importance of innovation in today's economy. The importance and the need for innovation result from its contribution to enhancing the productivity, competitiveness, economic performance and social objectives. Few managers have a wider vision which includes innovation, allowing a better performance of the activities. Companies need radical changes not only for products or services, but also for their business strategies. Unfortunately there is still no common understanding (and correct) of the term innovation among managers. Furthermore, not all managers are aware of the need for innovation. Under these conditions, increasing the adaptive processes of firms (through innovation) to meet the needs and performance requirements is difficult to accomplish in the absence of a systematic framework. We have analyzed the concept of innovation and its evolution in the scientific literature over time, its importance for EU member states and in the end of the paper we have identify some new research direction regarding innovation.