Innovation occurs on a global scale and has become increasingly important to the global economy. Economic globalization has reshaped the world economic order. (Commission of European Communities 2006) To stay competitive within this new world economic order, Europe must be more innovative. “These legitimate concerns must be turned into an opportunity to enhance Europe’s global economic competitiveness. The quicker it can react, the higher the chance of success and the greater prospect that its approach will serve as a global model. [...] the Commission is convinced that innovation in a broad sense is one of the main answers to citizens’ material concerns about their future.” (Commission of the European Communities 2006)
The Organization for European Economic Co-ordination (OECD) has acknowledged the importance innovation plays in growth of output and productivity. The understanding of innovation activities has increased but is still lacking. “For example, as the world economy evolves, so does the process of innovation. Globalization has led to dramatic increases in access to information and new markets for firms. It has also resulted in greater international competition and in new organizational forms in order to manage global supply chains. Owing to advances in technologies and greater flows of information, knowledge is more and more viewed as a central driver of economic growth and innovation. Yet, we do not fully understand how these factors affect innovation… (OECD)
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