Innovation & enterprise innovation strategies

Purpose: The purpose of this work is to presents the concept of innovation and its function in an enterprise. The sources and types of innovations have been described in this work. Innovation strategies used in enterprises were also presented. Design/methodology/approach: Due to the cognitive nature of the article, the aim of the work will be achieved using the method of analyzing the literature on the subject. Literature studies include Polish and foreign publications. Findings: Innovations are a multi-faceted concept and relate to various areas of a company’s operation – products, distribution channels, business processes, service methods, relationship with business partners, marketing and strategic alliances, etc. Nowadays, innovations are the most compelling way to gain a competitive advantage in the market. Innovation strategy depends on the type and size of the enterprise, as well as a company’s financial capabilities. Thanks to financing innovative activities, a company has a chance to achieve long-term growth. In today’s world, it is difficult to survive without innovations. Innovative enterprises have become the driving force of the economy. Originality/value: The article is a review of the literature on innovation. This work can help entrepreneurs who want to innovate their companies and achieve long-term growth. Managers can choose the optimal innovation strategy appropriate for the enterprise.