THE CONTRIBUTION OF INNOVATIONTO ECONOMIC DEVELOPMENT

Abstract

Innovation is key driver of economic development. Innovation boost GDP by increasing efficiency ,enabling higher output with minimum resources and fostering new industries. The study aims to construct a conceptual framework that demonstrate the role of innovation as a driver of economic development, focussing on how technological advancements ,product development and process improvement contribute to economic development as well as sustainable development. This study explains the role of innovation extends far beyond the development of new products and services, it influences the very structure of economies, enhances productivity, and addresses some of the most pressing challenges of society. The framework developed here identifies key pathway by which innovation affect growth including enhancing productivity ,increasing competitiveness and attracting foreign direct investment (FDI).The finding emphasizes that innovation not only improve productivity within firms but also boost national economic performance by fostering a competitive market environment , reducing ,production costs and facilitating entry into international market. Future research should focus on region specific studies that assess the impact of innovation in diverse economic context , thereby refining the relevancy of various stages of economic development.