The research described in the paper is aimed at presentation of the concept of the innovation process and formulation of a model of innovative potential in companies, along with defining determinants of this potential. The empirical part of the paper includes the results of the research on assessment of degree of innovativeness in companies in the Malopolska region. It has been found out that it is mostly knowledge and skills of employees of companies, method of work organization as well as cooperation between the entities in the given industry determine the degrees of company innovativeness.
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