The role of innovation is important at all stages of development. Specifically, the creation and diffusion of technologies are important for economic growth and welfare across all economies. The aim of this article is to analyze innovation from a theoretical perspective and focus on assistance of innovation in the Czech Republic - overview of institutions supporting the innovation activities of small and medium-sized enterprises (SMEs), their characteristics and selected programs that are used to support the development of innovative activity of SMEs. Further innovations are evaluated in terms of macroeconomics, and finally, analysis of the use of various types of innovation in manufacturing industries is made. Different types of innovation play a role at various stages. Opportunities for successful innovation experiments and a potentially different framework for development are emerging. The influence of the state for competitiveness and innovation is indisputable. The state is a mediator that affects how businesses can be competitive and innovative.
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