The Importance of Innovation for SMEs as a Prerequisite for the Sustainable Development of the Moldovan Economy

Abstract

Following its independence, the Republic of Moldova faced a range of political, economic and social is-sues and had to overcome them relying mainly on its own resource potential. The economyreformed in the context of an acute social and economic crisis and radical transformation of the economic system. The lack of experience in countering externalshocks, and economic and social crises, in conducting sys-temic reforms, coupled with the instability in domestic politics and the territorial disintegration of the country. The transition from centralizedand planned economy to the market economy focused on the maindirections: the price liberalization, development of the domestic market, privatization, and introduc-tion of the national currency weredynamic. A new banking system was created; the conditions and rules of economic activitieswere changed. However, the measuresweretaken and reform methods were not always corrected in a timely manner, the reforms were often hampered, and Governments were often changed for unjustified reasons. The paperemphasizestheimportance of the SMEssector for the nation-al economy and the role of innovation in SMEsdevelopment, the role of innovation incubators and scien-tific-technological parks as an important partin the implementation of innovationsas a prerequisite for the sustainable development of the Moldovan economy.