Innovation the main competitiveness factor in a global economy

The last twenty five years witnessed an exponential development of science and technology that covers each and every area of human activity from Internet to 3D printing and from nanotechnology and graphene to the use of stem cell for producing viable replacements for the human body. The speed of transfer of these developments from laboratories to consumer products and services also increased at an unprecedented pace.In this context the authors outline the role of innovation as a main factor of productivity butalso of differentiation for any company or country that operate in the global arena. The research reflects also on the mutual reinforcement that exist between the development of science and technology and education which currently faces a process of profound transformation. From the analysis of the relation European Union – world economy the final part of the study focuses on the risks of an innovation divide that may appear among European Union countries and regions. Possible strategies for avoiding the deepening of such a divide are evaluated and compared to the existing provisions of the Europe 2020 Strategy. The conclusions outline the speed of innovation and its dissemination in the world economy which raises new challenges for the European Union and asks for a much more flexible and responsive environment able to support a new business culture in Europe that is both entrepreneurial and more risk oriented. The need for a European version of venture capital institutions is also highlighted. The main conclusion is that a more innovative European Union is needed and in order to achieve this goal adequate changes are requested at the level of university education, research and development institutions, fiscal institutions and policies as well as the banking sector.