Author(s):
1. Midhat Subasic,

Abstract:
Today, more than ever, companies conduct business in a turbulent environment and therefore there are less and less factors which can be identified as the actual starters of companies’ growth. However one of the most commonly cited factors of growth in 21st century is – innovation. In order for the companies to be innovative they need to continuously invest in different segments/functions of their enterprise. Innovations by themselves do not guarantee output that is the commercial success because the innovation performance and the growth of the company depend on many factors. Therefore companies undertake further steps to stimulate innovation that would result in the growth of the company. This paper is the result of empirical research within which we attempt to clearly present identified dependent factors of innovation that lead to the overall growth of the company. The results of the research are based on extended empirical research of innovation and growth of an company from wood and metal industry of Federation of Bosnia and Herzegovina. Many stakeholders demand higher degree of innovation from the companies, innovation of products and innovation of processes. It is also important to state that companies meet higher degree of failed attempts of creating innovations. This can also be concluded on the basis of smaller number of radical innovations in the world. It is by innovation strategy as the only strategy of growth that the companies can significantly influence the reduction of failed innovations. There are often more possibilities for growth by innovation than there are resources for their development and the right decisions must be made. Innovational strategy needs to join decisions with the expected economic benefits and possibilities to determine returns from the innovations. The paper encompasses different intern starters of innovation where we focused on internal factors. Considering that man is the starter of all activities we have directed special attention to the analysis of influence of employees and their qualifications to the development of innovation. Therefore we observed mutual connection between levels of employee’s education and the company’s innovation, and the mutual connection between the innovation and the growth of a company.

Key words:
Key words: innovation, growth, innovative growth strategy, product innovation, process innovation.

Thematic field:
Tourism - sustainable development, regional develo

Date of abstract submission:
30.05.2012.

Number of visits:
432

Conference:
REDETE 2012