Abstract
The concepts of innovation and innovation potential have become crucial in the implementation of conceptual changes and strategic plans leading to changes in competitiveness. Innovation consists of the realization of new ideas projected into products, services, processes, systems, and social relations. Quantitative growth of innovations in the country and its regions as innovative capital is reflected in the innovativeness of products and the quality of services provided, affecting the behaviour of employees, the culture of companies, and the perception of the value of innovative products by consumers. The aim of the research is to compare the results of Slovakia and its regions with the results of European and V4 countries in terms of innovation potential. Based on analysis and comparison, the authors identified the strengths and weaknesses in the innovation potential of Slovakia and Slovak regions and the gaps that need to be overcome regarding the increase of the innovation potential and sustainable development.
TopBackground
The European Commission (2021a, 2021b) defined innovation as “the successful creation, introduction and use of innovations in the economic and social sphere or as the renewal and expansion of the range of products and services and their associated markets, the creation of new methods of production, supply, distribution, the introduction of changes in management, work organization, working conditions and workforce qualifications” (Kollár and Matúšová, 2019).
For the characteristic of Slovakia and Slovakia´s regions as the object of the research of innovation potential, we applied several macroeconomic indicators, including GDP which measures income and total expenditure in the country and follows the territorial principle (Lisý, 2016, p. 353).
Table 1. Real GDP growth in Slovakia [in %]
| GDP | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| in current market prices – nominal GDP | 76 092,7 | 79 888,1 | 81 014,3 | 84 442,9 | 89 430,0 | 94 048,0 | 92 079,3 |
| in constant prices – real GDP | 76 239,2 | 80 061,4 | 81 431,3 | 83 428,6 | 87 647,0 | 91 760,0 | 89 948,7 |
| Real GDP per capita | 13 600,0 | 14 300,0 | 14 550,0 | 14 960,0 | 15 510,0 | 15 890,0 | 15 180,0 |
| GDP at current prices/ per capita | 14 040 | 14 730 | 14 920 | 15 530 | 16 420 | 17 250 | 16 860 |
| real GDP growth [%] | 2,6% | 5,1% | 1,8% | 2,8% | 3,6% | 2,5% | -4,5% |
Source: own processing due to Statistical Office SR
Key Terms in this Chapter
Education Market: Denotes institutions providing services in terms of education, personal and professional growth of employed persons due to training needs and employers´ demands.
Labour Market: Denotes the market with the workforce supply and employers´ demands. The demands are formulated by businesses, enterprises, and producers due to demands of existing and emerging professions and jobs.
Innovation: Denotes a human capacity to produce new ideas and solutions projected into design, production, distribution and use of products, services, processes, systems, and social relations.
Regional Disparities: Refer to differences and inequalities among regions. They indicate gaps that need to be eliminated. The development of regions needs to be addressed by central and regional authorities with the aim to promote human resources development, high-quality education, competitiveness, and innovativeness which are the attractors for investors.
Innovation Potential as Composite Indicator: Denotes the capacity of human capital to contribute with innovative ideas to innovativeness and competitiveness of countries. Innovation potential is measured by innovation scoreboard. In Europe, European Commission monitors EU members and other countries in innovation and innovation potential annually and produces ranking lists.