International Journal of Economics, Commerce and Management United Kingdom Vol. II, Issue 12, Dec 2014 Licensed under Creative Common Page 1 http://ijecm.co.uk/ ISSN 2348 0386 EVOLUTION OF THE CONCEPT OF INNOVATION AND ITS RELATIONSHIP WITH PRODUCTIVITY & COMPETITIVENESS Jefferson Lopes La Falce FUMEC University, Brazil jefferson.la.falce@gmail.com Cristiana Fernandes De Muylder FUMEC University, Brazil cristiana.muylder@fumec.br Maria Barbosa Lima Toivanen VTT - Technical Research Center of Finland, Finland maria.limatoivanen@vtt.fi Abstract This theoretical essay is focused on the Innovation theme, its evolution and impacts over productivity and competitiveness. It started revisiting a literature, which confirmed that innovation covers several knowledge areas and, under an economical perspective, it is an important factor to analyze the development and growth of a country. Throughout of studies and researches about innovation, which started with Schumpeter, innovation has been studied mostly in function of its impacts, its diffusion, its absorption capacity, differentiated as to its typology and its relationship with the government and industry. Throughout these years of study, several measuring methods have been proposed, being that its relation with productivity and competitiveness is still highlighted in the academy’s researches. However they stress the need of a model for an empirical evaluation of the relation between these constructs. It is proposed, at the end, an analysis’ model to measure the innovation’s impacts on productivity and competitiveness. Key Words: innovation, impacts, productivity and competiveness, conceptual model.