Abstract. Investigating economic welfare and innovation performance have been the main themes of dominant researchers in the area of economics. Despite the fact the imperfection of Gross Domestic Product to evaluate welfare is generally acknowledged in economic theory, it is still applicated as one of the crucial indicators for creation of economic policy directions. Interest related to the constraints of GDP have increased to the several attempts in the past decennium to create aggregate economic welfare indicators as substitutes or augmentations to the GDP. A number of challenging indicators have been created, although GDP remaines to be applicated as the traditional indicator of economic welfare. The outstanding of these prominent economic welfare indicators are: the Genuine Progress Indicator, the Index of Sustainable Economic Welfare, the Human Development Index and the Better Life Indicator. This paper's main goal is to determine relationship between the prominent indicators of economic welfare and innovation performance in selected European countries. In order to examine the intercorrelations between economic welfare indicators and innovation performance several methodologies have been applicated. Research was conducted via statistical software package SPSS 25. The research results have indicated that the relationship between indicators of economic welfare in selected European countries are significantly associated with their innovation performance.

Keywords: economic welfare indicators, innovation performance, relationship, selected European countries.