Innovation is often recognized as a vital source of competitive advantage for business. Taking into account the conditions of increasing globalization at a high level of intensity as well as a rapidly changing technological landscape and also continuous customer demands for new products and services on the modern market, it is needed to assume that businesses have to innovate in order to survive and prosper in the contemporary environment. In the context of the paper at hand the main attention is given to the analysis of the theoretical and empirical aspects of the concept of innovation. There were applied such economic science research methods as monographic, grouping, reference, generalization, graphical analysis and content analysis.