Abstract:
Innovation is the main market trigger that generates economic growth and development. Although studies in the field
have pointed out numerous benefits that innovation brought to its creators and end consumers, not all companies
manage to innovate. This paper aims to evaluate the impact of innovation upon economic growth, by computing the
various indicators used to evaluate the management potential of innovation, the potential to create knowledge, the
potential to innovate and collaborate, the performance of innovation activities and the level of economic development
per country. The study was performed on the 27 European countries (excluding Luxemburg), using the information
available in Eurostat statistics for the period 2008 – 2014. In order to find an answer to the research problem, this paper
used the following data analysis methods: the ratios method, the correlation analysis, the comparative analysis. The
results showed that there is a strong, direct, and measurable link between a country's level of economic development
and its innovation ability, and the performance of innovation activities is influenced by their funding source (public or
private capital).
