Innovations Effect in the Company's Value

The paper presents the results of authorś research in measurement of effects of innovations in economic performance of companies. While discussing the economic performance of companies in a context of innovations, the first point of interest is usually a selection of proper method to measure it because innovations have wider impact on company's environment, both internal and external. Innovations themselves not only affect financial results but also substantially affect competitiveness and viability of a business entity. All these aspects are combined in the income based value of company. Objective of this paper is to determine the effect of technical innovations in company's income based value. Subsequently, the authors make synthesis of these results and the results of their previous research where the economic effect of innovations has been measured at application of company's gross production power.