One of the most important parameters of economic growth and development, but also of increasing productivity and competitiveness, is human capital and its knowledge. Investing in knowledge results in the creation of innovative products and processes. Innovation is the driver of the modern economy, helping to turn ideas and knowledge into products and services, or into something commercial and useful. Innovation and their development have become one of the primary goals of all modern enterprises. They are considered on the basis of growth and progress. Firms investing in innovation tend to achieve greater and faster growth than those that do not innovate and do not invest in innovation. Economic growth is a dynamic process of increasing a domestic product or national income in an economy, while economic development is a process of economic growth that is accompanied by changes in the economic and social structure of society, improving the quality of life and standards, and the redistribution of income and social power. In the age of modern IT advancement, innovations have become a constant companion for economic growth and development. There is a long-term connection between innovation and economic growth and development, and in this thesis we will analyze, among other things, how strong their connection is.