THE IMPORTANCE OF INNOVATION FOR SMES AS A PREREQUISITE FOR THE SUSTAINABLE DEVELOPMENT OF THE MOLDOVAN ECONOMY

Abstract

Following its independence, the Republic of Moldova faced a range of political, economic and social issues and had to overcome them relying mainly on its own resource potential. The economy reformed in the context of an acute social and economic crisis and radical transformation of the economic system. The lack of experience in countering external shocks, and economic and social crises, in conducting systemic reforms, coupled with the instability in domestic politics and the territorial disintegration of the country. The transition from a centralized and planned economy to the market economy focused on the main directions: the price liberalization, development of the domestic market, privatization, and introduction of the national currency were dynamic. A new banking system was created; the conditions and rules of economic activities were changed. However, the measures were taken and reform methods were not always corrected in a timely manner, the reforms were often hampered, and Governments were often changed for unjustified reasons. The paper emphasizes the importance of the SMEs sector for the national economy and the role of innovation in SMEs development, the role of innovation incubators and scientific-technological parks as an important part in the implementation of innovations as a prerequisite for the sustainable development of the Moldovan economy. Keyword: centralized, planned economy, liberalization, SMEs