Market dynamics causes that innovativeness, with changes as its natural consequence, is growing in importance. The level of enterprise innovativeness is viewed not only as a way to gain competitive advantage, but also as the precondition for sustaining in the market.
Using the contemporary definition provided by the Oslo Manual, innovation is understood to mean "the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations." [Oslo Manual, Guidelines for collecting and interpreting technological innovation data, Third edition, A joint publication of OECD and Eurostat, p. 48].
European Foundation for Quality Management defines innovation as a practical transformation of ideas into new products, services, processes, systems and social interactions. It creates new streams of value that satisfies stakeholders and ensures sustainable development. It creates new jobs, improves quality of life, facilitates sustainable social development. Innovation is not limited to "high technologies". It is developing dynamically in all the dimensions of the economy and society [http://www.efqm.org/, EFQM Framework for Innovation, 2005].
Innovation, in order to produce measurable benefits must be effectively prepared, implemented and approached holistically. Innovative activities must involve all the employees in the enterprise and external entities that cooperate with them.
Innovation should be understood as a system which depends on the size and nature of the enterprise, domain of enterprise's activities, number of employees, their knowledge, financial resources and type of innovation. Therefore, innovations concern various areas of enterprise activities, and individual innovative solutions contribute to development of a holistic-radical strategy of the enterprise. Evaluation of innovative potential of the enterprise needs to have a multilateral and systematic nature. Therefore, the authors of this study used the division of innovations according to the Oslo Manual and proposed the following methodology of examination of innovativeness [Oslo Manual, Guidelines for collecting and interpreting technological innovation data, Third edition, A joint publication of OECD and Eurostat, pp. 50 - 53]:
Process innovation: the innovation in the area of processes or the implementation of a new or significantly improved production or delivery method (also concerning logistics). This category involves significant changes in terms of technologies, equipment and/or software as well as significantly improved methods to produce goods and services.
Product innovation (and service innovation): the introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics or significant improvements in the method to provide services (e.g. adding new features or characteristics).
Marketing innovation: the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.
Organizational innovation: the implementation of a new organisational method in the firm’s business practices, workplace organisation or external relations. It includes new procedures, new methods of workplace organizations, relations with the environment, new methods of division of work or decision-making powers, new types of collaboration.