This book attempts to analyse, document and disseminate some basic information on the role of innovation in fostering competitiveness. It tries to consider the various variables that influence the implementation of innovative approaches in market economies, paying at the same time some attention to the barriers that prevent, inhibit or slow down further progress. Among other issues, the book discusses the «new» Lisbon strategy and provides an analysis of the means to implement innovation policy and enhance competitiveness in the European Union and in the new EU States. Moreover, it compares how technological development and international competitiveness influence the ‘old’ and ‘new’ EU Member States, also critically analysing Poland’s competitive position in the enlarged EU and considering its attractiveness for foreign investors from an income tax perspective. Due to its international scope, this publication is of special interest to educators, scientists and researchers working in the innovation sector. It also provides useful insights to politicians and other academics interested in innovation issues in the new EU member countries.