Regional Formation and Development Studies

Economy operates in a broader social system, composed of households and enterprises but also by all institutions created by people. Law and politics is created and introduced in institutions in parallel to educational, administrative activities as well as any other social activities, including those related to the natural environment we live in. These institutions operate thanks to the social capital i.e. interconnected human resources. The quality of the social capital is dependent on mutual trust and relations in the society. For this reason, social capital is of key importance for sustainable development, both as a controller of the impact of the economy on the environment as well as the basis for the future development. The environment evolves continuously, there are rapidly changing economic processes and, in consequence, their impact on the environment is changing rapidly, tool. This brings some specific challenges to the resource and quality of human knowledge and the competence level of the human capital, as the only tool for a possible reduction of all imperfections.

For successful economic transition to the new stage of development improvements in business environment, as also the entrepreneurswho are ready to start your own business and to set up new companies. One of the main challenges the EU Member States face isthe need to boost their level of entrepreneurship and to become more competitive in the global market. That was one of the mainobjectives set by the Lisbon European Council, in March 2000, with a view to improving the Union’s performance in terms of employment,economic reform and social cohesion. Entrepreneurship is not only a driving force in the creation of new jobs, but it alsoincreases and enhances competitiveness and growth, personal fulfilment and the achievement of social objectives. The authors payspecific attention to the need to examine factors that affect the business environment development and entrepreneurship in regions ofLatvia, which determinethe complexity of the existing conditions and factors in each region in Latvia.

Innovation and entrepreneurship in regions is one of essential tools, in added value creation in economics and in development in national level. It is very important to encourage creativity, new ways of thinking and continuous process of learning of individuals. There are some different approaches how to measure competitiveness of state economy and competitiveness in regional level. Global Competitiveness Index shows competitiveness of state among other world economies based on the 12 pillars of competitiveness, which is difficult to apply in regional or entrepreneurial level due to lack of data at regional level. Innovation is a key factor for development and competitiveness in individual (individual, enterprise) and institutional (local governmental institutions, regional, national and global level. Scientific problem of article is that impact of creativity, knowledge creation and dissemination and cooperation could not be measured trough quantitative data. Aim of the article is to define support model for cooperation of individual – institutional level in innovative entrepreneurship and its impact on regional development. Methods ar analysis of scientific literature, and political planning documents for define of support model in dynamic external environment.

Innovation and an innovative approach in management, education and leadership have been changing over decades, according to the dynamic world we are living in. Changes start at an individual level, with the personality, and only those who have changed themselves can start to lead others towards global change. The Latvian National Development Plan defined aspects of polycentric development for all the regions of Latvia. Each region has resources, strengths, weaknesses, opportunities and threats, but human resources are the most important resource for change, creative ideas and sustainable development. The education system changes very slowly, from lecture learning to a more inclusive ‘learning by doing’ approach. This approach has been used in northern countries for a while, but Latvia has just now started to implement the approach. The term ‘innovation’ today is wider than product, process, service or organisational innovation. At a national and regional level of development, it is crucial to encourage inhabitants of the region to stay in or return to rural areas, and create knowledge and enterprises in the region and their home town.The aim of the paper is to evaluate the involvement of residents in management activities and regional development processes, and their willingness to participate in the creation of knowledge and innovative entrepreneurship and co-creation. The paper is a review of literature on theoretical aspects of the creation of innovation in the region in a combination of survey analyses of residents. The methodological approach is based on two steps: a review of research literature, and an analysis of the results of a survey of residents of the region of their willingness to be involved in processes and tasks for regional development, and some aspects of analysis of entrepreneur opinion about innovative solutions in their companies. The article consists of four main parts: 1) the theoretical findings of a systemic approach to innovation and development; 2) the role of the innovation process in development from different perspectives; 3) an analysis of a survey of the region’s residents about their willingness to be involved in processes of regional development; 4) aspects of innovation used in regional entrepreneurship. The significance of the paper is to define aspects of regional development relating to innovation and co-creation.

The article aims to show that the main and most important prerequisite for successful hotel business growth in current promptly changing business environment becomes development of innovation in the hotel industry. Though the term innovation is already widely defined by many researchers, it is considered in the article as a subject for future discussions leading to proposed scientific classification of innovations based on selected criterions. Evaluation of the process of innovation appearance in the hotel market allowed creation of the model, presenting the main influences and attributes of the whole innovation process in a hotel industry. Afterwards, the article discusses some specific innovation tools that are essential for hotel enterprises and which could be challenging for hoteliers in Ukrainian market nowadays. Based on the empirical research results, the obstacles which hinder up-to-date innovative operations in Ukrainian Radisson chain hospitality market are discussed. As well, concerning prospective innovation trends for Radisson Hotels in Ukraine, advices for future innovation implementation were proposed.