Leading Role of Innovation for Sustainable Economic Development

Abstract

The aim of this paper is to increase role of innovation and specification of its functions under the modern challenges, as the key factor for the sustainable political-economic and social development of countries, as well as the rational use of resources and sustainable environmental protection; As well as introducing new approaches as an opportunity to accelerate expanding the role of innovation. In the definition of economic space of innovation, the objectives of sustainable development are also considered, as the implementation of the requirements of sustainable development objectives necessarily has both a spatial dimension of action and the dimension of environmental impact as a result of human activity. This implies both qualitative and quantitative spatial dimensions and an integral combination. In such approaches, direct economic interests change and it becomes clear who can create the hidden forces of contrary action that oppose targeted positive action. At the same time, the set and agreed global standards of economic area will become an authentic tool to overcome such overt or covert opposite forces that have only a consumer attitude towards the economic space. In the paper, the increase of innovation utilization index is presented as a proportion to the growth of socio-economic and political development and inverse dimension to poverty and environmental imbalances. In addition, the leading role of innovation, socio-economic environment and sustainable economic development are discussed in the three-dimensional model of the systems’ life cycle.