Abstract
Innovation and R&D are primary policy factors when governments seek to address major societal challenges through state-level welfare initiatives, and are essential elements in balancing socio-economic development. It is for this reason that the European Union and the governments of its member states have launched a series of initiatives, such as the Lisbon strategy, the Europe 2020 Strategy, the Green Paper on Innovation, and the Action Plan for Innovation in Europe, to stimulate and support innovation and R&D. The article reviews the literature on the theory of innovation in terms of its impact on R&D and compares the development activity undertaken in this area in Poland and Italy. Underpinned by quantitative data and a SWOT analysis, it then presents a comparative analysis of these countries’ research systems. The conclusion specifies policy initiatives that could be taken by Poland and Italy to encourage innovation-based R&D.
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