Knowledge based innovations in modern entrepreneurship

J.A. Schumpeter was the first one to relate the term innovation with the term entrepreneurship. He found innovation to be the only source of pure profit created by the entrepreneurs. The entrepreneurs estimate ideas that the innovators come up with and afterwards they implement and advertise them. Innovation is a spiritual creation, non-materila but incorporated in material and non- material goods. As non-material goods seem to have more and more significant role in the area of production, the meaning of innovation and the knowledge factor are also getting more important. The need for creative-innovative actives and innovation in general is permanent. That is the condition for economic successfulness and development of the modern enterprise. Entrepreneurial ideas and innovations, when successfully introduced to the market, are the essence of modern entrepreneurship. The sources of knowledge based innovations are: new technology, changes in the production structure, consumers' new needs, legislative changes, etc. Knowledge based innovations can be achieved in a systematic way. They are the basis of new development pattern, »a learning organization« and the knowledge based society