INNOVATION-DRIVEN ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT

Innovation-driven entrepreneurship has emerged as a major catalyst for economic development in both developed and emerging economies. By introducing new products, services, technologies, and business models, innovative entrepreneurs contribute to productivity growth, employment generation, industrial competitiveness, and sustainable economic progress. Unlike traditional entrepreneurship, innovation-driven entrepreneurship emphasizes creativity, technological advancement, value creation, and continuous adaptation to changing market conditions. Governments, financial institutions, and educational organizations increasingly recognize entrepreneurship as a strategic tool for fostering inclusive economic development and strengthening national competitiveness. This review paper examines the relationship between innovation-driven entrepreneurship and economic development by exploring entrepreneurial ecosystems, digital transformation, innovation strategies, access to finance, policy support, human capital, and sustainable business practices. The paper also discusses the challenges facing entrepreneurs and provides strategic recommendations for strengthening innovation-led economic growth. The findings indicate that innovation-driven entrepreneurship significantly enhances business competitiveness, creates employment opportunities, promotes technological advancement, and supports long-term economic sustainability.