Entrepreneurship and economic effects of innovation policy of the European Union: international trade and economic growth
Entrepreneurship and economic effects of innovation policy of the European Union: international trade and economic growth

Summary/Abstract: RESEARCH OBJECTIVE: The aim of the article is to present the effectiveness of the European Union's innovation policy for economic growth in the Member States, taking into account the dynamics and growth of export potential and the competitiveness of exports of European companies and the level of entrepreneurship. THE RESEARCH PROBLEM AND METHODS: Based on the theory of international trade, the article examines the effectiveness of the innovation policy, as a result of which the EU countries achieve benefits, by increasing the level of exports and increasing the level of competitiveness in international trade. The article identifies geographic clusters and enterprises located in a given geographic region that benefitted from the Europe 2020 program and A New European Innovation Agenda, as part of the European Union's innovation policy. THE PROCESS OF ARGUMENTATION: The article uses the example of EU funds under the Europe 2020 program and A New European Innovation Agenda to present a theoretical review of the relationship between exports and the development of innovations in the economy, determining the specialization and competitiveness in international trade. RESEARCH RESULTS: The export potential of EU Member States results from the competitiveness of SMEs operating on the global market, which is why state intervention in the form of innovation policy at the supranational and regional level is necessary. The innovation policy of the European Union has enabled increasing the level of exports of EU Member States and increasing the competitiveness of products manufactured in clusters. CONCLUSIONS, INNOVATIONS, AND RECOMMENDATIONS: An important problem to be examined is the issue of creative destruction in the sense of Schumpeter, an increase in the level of innovations/innovativeness should lead to an increase in the technological progress (patents) of companies and the economic growth of industries.

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