The Importance of HEIs and Firm Relationships in Innovation-Driven Models

Introduction

Changes embodied in the digitization and increasing use of ICT solutions have taken place in society in recent decades. They have significantly changed the way of life of an individual, but also the way of doing business. In order to meet the needs and to get through in the modern business environment, the development of new products and services has been noted, which makes innovation an essential factor in social and economic progress (Dodgson & Gann, 2010; Schumpeter, 1942). Policy makers have come to the conclusion that solutions based on the old paradigm of efficient accumulation of traditional resources will not be enough and that the survival of businesses based on this paradigm is almost impossible. Instead, intangible assets, that is, intellectual capital, in which human capital stands out as the most important component, surpassing land and labor as major drivers of economic growth (Goh, 2005), are gaining importance.

The significant changes that have taken place have led to the transformation of the way of life of individuals and business, while at the same time creating a need for new products and services, which can only be met by fostering innovation. In the context of numerous economies, technological innovation is cited as the most important driver of competitiveness, as evidenced by the fact that a large proportion of modern firms rely on these products, which generate almost a third of total sales and profits (Barczak, Griffin & Kahn, 2009). However, in addition to technological innovation, there are innovations that involve the creation, acceptance and implementation of new ideas, processes, products or services (Thompson, 1965). Thus, innovation is not only found in the activities that companies perform, but also in their processes (Dodgson & Gann, 2010).

There is no unique definition of this phenomenon in the literature (Ariss & Deilami, 2012) and a significant portion of the academic public has resorted to presenting innovations according to the needs of studies and research conducted (Garcia & Calantone, 2002). In addition, the given problem area is complex since innovations continue to be associated with high failure rates, which is largely due to a limited understanding of the causes and consequences of the processes implemented (Goh, 2005). However, despite the obstacles in valorizing innovation and the difficulties in measuring the innovation capacity of firms, it is impossible to neglect the importance of innovation for the economic development of a country. On the one hand, innovation, which affects economic growth, refers to the effective use of scientific, technical, organizational and management tools. On the other hand, the government must not only take care of enhancing efficiency and productivity, but must enable firms to increase entrepreneurial opportunities by finding innovation. The reasons cited above indicate the undoubted importance of transformation in today's business world, which has contributed to the development of an innovation-based economy.