ALLUSION TO PUBLIC POLICY: INNOVATIVE ENTREPRENEURSHIP

Innovations play a significant role in surviving in economic and market games. However the innovation is not self-sufficient tool for response of all future challenges and needs. It requires potential for new knowledge generation, adaptation and commercialization, and support of government. Therefore the article presents a conceptual analysis of the relationship between innovation and entrepreneurship, with the main focus being on the business sector, highlighting the role of government policy in the promotion of innovation through entrepreneurship. It is said that the dimension of innovation is at the core of entrepreneurship, but at the same time these concepts still often are defined singly. The concept of entrepreneurship is often wrongly explained, just as business activity or establishment of new enterprises without focus on innovation. In this respect, there is a suggestion to adopt the concept of innovative entrepreneurship as the new direction for development of innovation through entrepreneurship.