THE ROLE OF INNOVATION POLICIES IN ECONOMIC SUSTAINABLE DEVELOPMENT OF THE EU

Innovation is one of the key-elements providing increased competitiveness to countries which is defining in building effective economies. In modern conditions, great attention is paid to economic sustainability which besides effectiveness takes into account the impact of human activities over the environment. Europe has always been one of leading forces of innovation in the world. However, its importance has constantly decreased due to rise of the US, Japan and newly of China. The European Union has oriented much effort towards fostering innovation through various policies and instruments in order to keep up with the growing pace of economic and technologic development in the modern world. By these policies, the EU aims at creating favourable conditions for countries to promote innovation taking into account the national peculiarities as to allow improved flexibility and adaptability. The main goal of the present paper is to assess the impact of the EU innovation policies upon sustainable development of the member countries. There are to be analysed the main paradigms,concepts, initiatives and strategies frame-working innovation in the EU and, consequently, their impact upon economic development and the consistence in facing new challenges. In the end,on the base on identified correlations, concrete actions and measures to foster performance of innovation policies in general are identified