Regional Formation and Development Studies

Innovation development process in companies is described by several challenges. One major problem is that there is much confusion about what it takes to develop innovations and what factors affect the innovation development process. The paper focuses on innovation process’ affecting factors in Latvian market. The paper’s goal is to identify main factors that affect the innovation process the Latvian companies. After surveying 128 companies, authors concludes that many factors affects innovation process and none of them should be ignored. Following factors affect innovation process the most and therefore should be analysed more deeply: 1) The company’s own resources; 2) High employees knowledge, competencies, skills and experience; 3) Investors’ attraction opportunities. Research also emphasises importance of company’s human resource, therefore authors suggest companies to look at their employees from different paradigm and approach them as the most valuable company’s asset.