Business innovation what it is and how to use it

The dynamic development of the European economy in recent years, apart from improving the quality of life in most regions, also entails the risk of falling into the so-called average income trap, which the Czechs and Slovenes, among others, are already struggling with. In order to avoid stagnation or even economic recession, it is therefore necessary to change the model of economic development from imitative to innovative.
What is innovation?
Innovation is not only the introduction of a new or improved product to the market, but also the implementation of changes in the functioning of the entire enterprise. Products are considered to be innovative if they are new to the operator or new in the area. We distinguish several types of innovations: product innovations (e.g. introduction of a new or improved product to the market), technological innovations (e.g. implementation of improvements in the production or distribution of products, improvement of working conditions or reduction of the company’s environmental impact), organisational innovations (e.g. improvement of procedures regulating the company’s work) and marketing innovations (e.g. development of a new product promotion strategy).
Innovation enables rational management of materials during production, enriching the offer of a given enterprise, as well as meeting all the standards and legal requirements. Implementation of new procedures or introduction of an improved product to the market increases sales and competitiveness of a given company.
How to obtain funds for the implementation of innovative activities in a company?
Entrepreneurs, as the basic barriers hindering the implementation of innovations in companies, list first of all: lack of funds for the modernisation of research facilities, high labour costs and insufficient equipment of scientific and research centres. Innovative measures need time and commitment to be implemented. Entrepreneurs who plan to implement innovative actions can count on support from the programmes from the financial perspective for 2014-2020, thanks to which they can obtain non-refundable financing from the European Union.
Additional funds may be allocated, inter alia, for the construction or expansion of research and development centres, purchase and maintenance of research equipment, implementation of the research agenda and remuneration for specialists. Both large companies and companies from the enterprise sector can apply for innovation grants (/). The amount of co-financing depends on, among other things, the location and size of the company.

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