Abstract
The innovative potential of companies is a pivotal driver of both firm-level competitiveness and broader economic transformation. This study quantitatively and qualitatively assesses how innovation—viewed as a core component of intellectual capital—affects the commercial success of companies across Eastern Europe, the Caucasus, and Central Asia (EECCA) compared to adjacent European markets. A regression analysis on panel data reveals that intellectual capital innovation explains 54% of the variation in inclusive growth among firms oriented toward sustainable development. Specifically, Human Capital Innovation exhibits the strongest positive effect (β = 0.438, p < 0.001), followed by Relational Capital Innovation (β = 0.319, p < 0.001), and Structural Capital Innovation (β = 0.217, p = 0.0004). Firm size also positively correlates with growth (β = 0.124, p = 0.006), confirming scale effects. Knowledge-intensive companies in the Caucasus and Central Asia remain at an early development stage, whereas firms in Eastern Europe demonstrate innovation efficiency comparable to more advanced European markets. A qualitative analysis further substantiates the significant correlations between innovation, intellectual capital, human resource management, and firm success. The findings support the practical use of innovation management and intellectual capital development strategies to enhance competitiveness, particularly in emerging markets undergoing industrial transformation.