Theoretical Aspects of Innovative Design and Implementation Possibilities for Business Development in Latvia.

The research aim is to investigate the theoretical aspects of innovative design promoting factors and foreign experience, and to define the implementation possibilities for business development in Latvia. The tasks of the research are to investigate and characterise the theoretical aspects of innovation and design in the economic literature; to characterise the factors influencing innovative design; to investigate the European experience for implementation of innovative design; and to define the implementation possibilities of design innovation for business promotion in Latvia. Design and innovation are often key elements to the success of business enterprises, especially during the time of economic recession. The research focuses on the characteristics of innovation, design, and development, and is based on the studies of theoretical literature. The studies of literature have led to the specification of the role and significance of design innovation. The notion of design-driven innovation has been introduced, which is a systematic and "user-driven" approach to the ideas stage in the development of new products, services, business processes, or organisational forms based on the study of users' lives, practices or needs, including unacknowledged or latent needs, which one may expect will be demanded. The influencing factors of design innovation are characterised and specified in the study. The research results show that business enterprises, which are using different kinds of resources for designing and developing cutting-edge products and processes, are more innovative and have better possibilities to maintain their competitiveness. The focus is laid towards innovation by design provided technology development, sustainability, and social changes of different countries. It requires an environment that is conducive to the creative and innovative activities, supported by both the public and the private sectors. [ABSTRACT FROM AUTHOR]