Analysis of the relationship among innovation performance, economic development and social welfare

Research and development and innovation has an indisputable role in increasing the economic competitiveness of a country or a region and also indirectly in creating social welfare (Pitti 2006). Theoretical and practical professionals have been interested in this issue for decades, what is more for centuries. However it was not always called research and development and innovation but simply technological development (Pakucs 2003). Nowadays the significance of research and development results, new or significantly improved products, services, processes, marketing and organisational innovations in each economic branch has been increasing (Török 2006). There is growing interest in connection with the topic among the government, businesses and public opinion as well, since performance in the field of science and technology is an alternative tool for economic prosperity on the individual, corporate and macroeconomic level. The aim of the present study is to give a brief overview about the measurement methods of innovativeness, economic development and social welfare. After that I will describe the relationship of these three key factors as well the effect of innovation performance oncertain dimensions of social welfare.