Abstract:

The purpose of the paper is to highlight the impact of innovation and technical progress on the economy. The research methodology is based on a comparative and dynamic analysis of the indicators that characterize the level of economic development, the potential for innovation, the technical progress and innovative performance across eight countries members of Organisation for Economic Co-operation and Development (OECD). The study results indicate that the economic level is positively influenced by the innovation and technical progress stimulation, through allocating a larger percentage of GDP to the research – development expenditures and through a prevailing involvement of business actors in these activities. Also, the technical progress determines the increase of production factors productivity and thus, a greater economic performance. Th governments must stimulate the innovation and technical progress, in order to record growth and to be competitive in the global knowledge economy. Considering that innovation and technical progress are the main market triggers that generate economic growth, the research findings have practical implications. Thus, the results may substantiate the decisions making regarding the economic growth strategy based on innovation, at both macroeconomic and microeconomic level.