Impact of Innovation Upon the Dynamics of Romanian Small and Medium Sized Enterprises

Innovation is central to economic growth, as the area in which it develops takes the whole sphere of economic activities: product, process, service, organization, marketing, hence the economic effects they may cause. Creating "innovative enterprises", giving tax cuts to certain periods of time, preferential loans, creating funds 'risk capital' are just some of the measures that European countries which already apply and Romania, willing to encourage innovation. The present paper presents two ways of exposing this issue, using theoretical sources but also real official data concerning the concept of innovation and also the ways of applying it within small and medium sized enterprises.