Innovation Life Cycle

AbstractThe paper is based on previous research of authors in which the effects of technical innovations in economic performance of business entities has been proved. Nevertheless, this effect is limited by time, i.e. innovation profit is limited as well. Limited innovation profit has been already noted by Schumpeter (1934) in his initial works. However, innovations influence all the enterprises processes as well as the life cycle of a company. From this point of view, innovations are an important factor of value drivers’ development, more over it might be possible to suppose them to be independent value driver. Objective of the submitted paper is to determine the probable length of technical innovation's life cycle regarding to value drivers. In the frame of previous researchers, the authors have also proved that the effect of innovations is among others limited also by the branch of economic activities of a business entity