Over the course of economic globalization, the innovation aspect of entrepreneurship has gained critical importance in almost all sectors,
including the fashion industry. The emergence of an entrepreneurial economy stimulated a new type of competition in the fashion industry
and changed the face and nature of the competitive advantage around the world. In this context, the introductory part of the study elaborates
on “innovative entrepreneurship” by focusing on the theories and definitions of innovation and entrepreneurship. In the light of the eminent
literature on innovation-related entrepreneurship we could argue that fashion businesses and fashion employers require high level of
innovativeness and entrepreneurship to produce high performing firms. As specifically emphasized in the literature, innovation increases
firm performance and contributes to competitive advantage. To support this argument, evidence on innovation-based entrepreneurs and how
innovativeness relates to entrepreneurship were given from fashion companies, entrepreneur-fashion designers and their various innovations.
The fashion industry provides numerous examples of individuals who are simultaneously inventors, owners and managers of fashion
business firms. These emerged as a product of commercialized fashion ideas and design, manufacture, business or marketing methods that
caused revolutionary or incremental change in the fashion industry. Their impact as elements of competitive advantage in the fashion
industry is also highlighted. In the last part of the study, innovation management in the fashion industry is evaluated. Despite the high
influence of fashion in modern society, its analysis from a management perspective has not been sufficiently conducted, and hence “fashion
creativity and business intellect” have been categorically viewed separate. Today, global business of fashion requires sophisticated
management techniques in addition to a high level of creativity and innovation in view of the rapid development of business strategies that
relate to fashion management.