COMPETITION POWER AND INNOVATION IN FOREST PRODUCT INDUSTRY

Developing new products and innovation causes substantial differentiations in the lifecycle of companies. Production of new products, processes and information are extremely important for a firm to keep up and compete with others in the market. In this study the process of innovation produce in the sector of forest product industry was investigated. This study, conducted in 102 small and middle size firms, showed that the export companies are more successful in innovation, information production is tremendously effective in innovation, and new products and processes are indispensable for competition. It was further deter-mined that if research activities in forest product industry were supported with sufficient financial re-source, the production of new products, process and information could be achieved satisfactorily, and market and competition domination could be gained in national and international market