Abstract
Innovation is a key driver of modern economic growth, especially as economies navigate the challenges of globalization, technological change, and sustainability demands. In sectors such as agriculture and small and medium enterprises (SMEs), innovation plays a crucial role in enhancing productivity, ensuring food security, and supporting regional development. Case studies from Slovakia and Indonesia highlight distinct but related pathways through which innovation contributes to economic transformation. However, current literature lacks integrative analysis on how innovations both technological and institutional are operationalized across diverse sectors and contexts, and how they align with broader economic policies to stimulate inclusive growth. This study investigates how innovation development affects economic growth, focusing on the agricultural sector in Slovakia and SMEs in Makassar City, Indonesia, using mixed methods to assess economic indicators and stakeholder experiences. The findings show that innovation adoption significantly correlates with increases in GDP, productivity, and business sustainability. In both contexts, institutional support, technological capacity, and human capital were critical enablers. This research contributes a comparative, cross-sectoral perspective combining empirical data and stakeholder insights to bridge macroeconomic policy with micro-level innovation practices. The study informs innovation policy design by demonstrating the need for integrated support systems, particularly in resource-constrained settings. Future research should explore longitudinal impacts of innovation adoption and its role in achieving inclusive, resilient, and sustainable economic development.