Innovation as a tool for sustainable development

Abstract

Economic development even in an economy based on knowledge and innovation, functions at the expense of the natural environment and its qualities. Therefore, action is needed to reduce and even prevent the formation of negative externalities associated with economic changes. Such activities are undertaken in the process of implementing the concept of sustainable development, but also can be part of the innovation strategy of the state or a company. Innovations therefore serve important functions not only of economic and technical production character, but also social and environmental. Between environmental policy and sustainable development (eco-development) and innovation policy and economic development, there is no contradiction. On the contrary, compliance with environmental standards and respect for the principles of sustainable development can be a stimulus to the modernization of the economy and businesses. This promotes innovation, forcing them to seek new and more effective solutions to manufacturing, which in turn increases the competition between firms in both domestic and foreign markets. This means that the need to protect the environment and assumptions of the concept of sustainable development are carriers of technological progress and innovation. Although innovations, particularly eco-innovations are an important determinant of economic growth effectively using natural resources, greener and more competitive, their introduction to business practice is difficult, demanding system solutions, appropriate policies and appropriate incentives, especially financial ones. In our country, subsidizing entities implementing innovations so far has been of a limited character and based primarily on EU funds. In the future, the share of non-repayable assistance from public funds in the financing of innovation will be reduced in favor of a grant of a return of investment funds character.