THE IMPACT OF INNOVATION ON BUSINESS DEVELOPMENT: A STRATEGIC ANALYSIS OF COMPETITIVENESS AND ORGANIZATIONAL PERFORMANCE

Abstract

In a globalized economic environment, innovation is no longer an option, but a vital requirement for survival. This article provides an overview of specialized literature, exploring the theories and models that explain how innovation contributes to business success. From Schumpeter's classic ideas on "creative destruction" to modern concepts of open innovation, we analyze how various types of innovation—product, process, marketing, and organizational—shape the market. The article demonstrates how a strategic approach, based on a deep understanding of these mechanisms, is crucial for building competitive advantages, optimizing costs, and strengthening a company's long-term position.