Transformations  in
Business & Economics

The Role of Institutional Policy in Developing Innovative Entrepreneurship in Lithuania
Dainora Grundey, Bernardas Toluba, Donatas Pilinkus, Lina Verbauskienė

ABSTRACT. The rapidly growing importance of knowledge for economic welfare and competitiveness puts increasing focus on the firm and country’s ability to innovate. It brings both new opportunities and challenges for companies, individuals and institutions. Lithuania has made a significant progress on institution-building and policymaking in support of entrepreneurship over the last ten years. There were both well-developed goals and programmes, and institutions for implementation in the country. Lithuanian policymakers are increasingly recognizing the importance of innovation policy for competitiveness and economic development.

The objective of this paper is to demonstrate the relevance of innovation policy for economic growth and competitiveness. The main goals of innovation policy are achieved only when it is coordinated and supported by essential governmental and non-governmental institutions. Only suitable institutional infrastructure can allow adoption, diffusion and profitable use of innovative technologies.

KEYWORDS: entrepreneurship, innovation, institutional infrastructure, Lithuania, SMEs.

JEL classification: L26, O32, H52, P2.