PUBLIC MANAGEMENT AS AN ELEMENT OF INNOVATION IN A MARKET ECONOMY

The paper presents an analysis of the role of public management in a market economy and local government. Public management is here regarded as an instrument for improving the efficiency of the organization with the involvement of civil society and thus social capital. It also presents selected factors conducive to economic development in a market economy, ongoing trends in management sciences, strategies and innovations. Emphasis was placed on public management as typical of the local government, and involving the implementation of management theory into practice. It was assumed that the creative organization which boldly goes for new challenges and engages social capital, has a greater chance of success than the one which has a conservative attitude.