INNOVATION, ENTREPRENEURSHIP, ROUTINES AND BUSINESS: AN EVOLUTIONARYINSTITUTIONAL MODEL OF ECONOMIC ACTIVITY TRANSFORMATION

This paper proposes a theoretical model for the transformation of economic activity, grounded in the interplay between innovation, entrepreneurship, the formation of organizational routines, and the emergence of business systems. Drawing on classical and contemporary research in innovation studies (Schumpeter, Drucker, Nooteboom), entrepreneurship theory (Shane, Venkataraman, Sarasvathy), evolutionary economics (Nelson, Winter), and organizational routines (Feldman, Pentland), the study develops a life-cycle framework in which entrepreneurship is conceptualized as the phase of translating novelty into viable opportunity, while business is understood as an institutionalized system of reproducible routines. The model provides a structured conceptual distinction between entrepreneurs and business owners, addressing persistent ambiguities in post-Soviet and transitional economies.