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The purpose of the paper is to analyse the role of international technology transfer (as part of an economic system) in the processes of creating and applying innovation, as well as the impact of technology on the efficiency of economic activity conducted by business entities. The study encompasses the economic activity of European Union countries and the companies functioning in the framework of national economic systems. The analysis was conducted by means of the soft modelling method. This method enabled to examine links between variables which are not directly observable in particular between international technology transfer and innovation. The results demonstrate that for countries relying on international technology transfer, being part of an economic system does have a positive impact on innovation. Thanks to international cooperation, companies (and countries in general) become more involved in innovation activity, which enhances their competitive position.
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