Page 22 - Gričar, Sergej, Barbara Rodica and Štefan Bojnec, 2016. Sandwich Management. Koper: University of Primorska Press
P. 22
Sandwich Management

Innovation helps individual small enterprise in service to maintain
their competitive edge. Innovatioans also contributing to expansion of
capacity and also generating additional capital investments productivi-
ty, technological advancement, employment, and growth (Stam and Stel
2011). Todays academic researches are given much more importance to
the agents that interact in the process of innovation than to other factors.
These has led to a convergence of several academic researchers such as Free-
man (1987), Nelson and Winter (1982), Rosenberg (1982), and Lundvall
(1988), followed by the discussion of the dynamics of innovation at the re-
gional and national level. Companies of all sizes nowadays, seek to inno-
vate in order to gain competitive advantages, which in turn, create eco-
nomic flows and dynamics that support labor and also the creation of new
companies, affecting what has been called the »National Innovation Sys-
22 tem« (NIS).

Two features of the enterprises environment have a major influnce on its
innovation strategy, national system of innovation in which the netreprise
is embedded and market position compared to competing firm (Tidd, Bes-
sant, and Pavitt 2005). The approach of national innovative ability stresses
the importance of specific qualities of enterprises, their innovation orien-
tation and the perception of potential partners that cooperate with them.
National innovative ability depends on the common innovation infrastruc-
ture, the innovation environment of an individual country within a cluster
and the quality of the connections between these two building blocks (Fur-
man, Porter, and Stern 2002). Thus institutional factors are of exceptional
importance for innovativeness, as they provide the possibility of applying
scientific and research achievements to the entire economy through a suita-
ble entrepreneurial infrastructure. NIS is an open system and is in constant
interaction with the environment (Rodica, Starc, and Konda 2014).

The NIS includes five groups of organisations as follows: companies,
research institutions, universities, organisations which promote scientif-
ic-technological progress and the state. If innovation is every useful thing,
the aforementioned elements should be complemented by invention-in-
novation processes that are not part of R&D, the structure of economic
and non-economic activities besides industry, including innovation in the
scope of the government, the prevailing culture, ethics, and values rath-
er than just knowledge (education and training) (Mulej and Ženko 2004).
The success of the NIS depends on the operation of individual institutions
and especially the development of relationships and connections or a net-
work of connections within the whole innovation system (Rodica, Starc,
and Konda 2014).
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