Innovation and Competitiveness: Theoretical Framework for Interactions

In the dynamic changes of the global economy, innovation plays a key role in maintaining and increasing competitiveness. The aim of our study is to explore the theoretical framework of the interactions between innovation and competitiveness, with a particular focus on the specificities of different industries and business environments. The research will examine the impact of innovation strategies on firms' market position and the role of product and process innovations in enhancing competitiveness through a literature review and empirical analysis. Our results show that successful innovation activities do not only involve technological improvements, but also the transformation of organisational cultures and processes. In developing the theoretical framework, we discuss an integrated approach to innovation systems that facilitates sustainable competitiveness enhancement in the corporate sector. This paper contributes to a deeper understanding of the theory of competitiveness and innovation and provides practical recommendations for firms.