Theoretical aspects of innovation management

In recent decades, the need to theorize and practise innovation has become apparent to many domestic and foreign companies. The process of introducing innovation mechanisms differs from company to company. Businesses and innovation theory experts do not yet agree on the methodology for implementing innovation effectively. The increasingly competitive environment of the world encouraged many companies to move towards innovative development. Innovation became an important tool for sustainable development for many companies in an unstable and rapidly changing external environment. Innovation is used to create a new product or develop a process to increase a company’s profits and strengthen its market position. The term “innovation” has a different understanding today, depending on the area of application: firms or sectors. The article examines the theoretical concepts of innovation