Corporate Governance and Innovation: The role of the board of directors in supporting innovation projects

Abstract

Today's business environment is characterized by a high degree of uncertainty, rapid digitalization, changing consumer preferences and increasing global competition. Under these conditions, the company's ability to continuously update and innovate becomes not just a competitive advantage, but a necessary condition for survival in the market. Innovative projects cover a wide range of areas, from digital transformation of business processes to the development of new products and sustainable business models. However, the path to innovation involves increased risks, significant investments, and the need for long-term strategic thinking.

In such a situation, the role of the board of directors becomes particularly important. As the body responsible for strategic management, oversight of executive management, and protection of shareholders' interests, the Board of Directors can have a significant impact on the company's innovation agenda. It can both stimulate the development of innovations and slow down their implementation in case of insufficient involvement or focus solely on short-term financial performance.

Supporting innovative initiatives requires new competencies, flexibility of thinking and understanding of technological trends from the board of directors. In addition, the ability to effectively interact with top management, build a culture of openness to experimentation and failure, and create an internal infrastructure for the development of innovation is important.