The intention of this article is to make a theoretical-conceptual analysis of the role of innovation in the economic development of Panama. A bibliographic-documentary research was carried out on the origin, definitions, characteristics, basic elements that are established between the agents involved in the innovation specifically in the national dimension. It is concluded that innovation is an instrument to address the problem of economic development, Panama needs to improve its innovation systems in general, through programs and projects that promote knowledge, through quality education, courses and trainings for students and Workers in general, in order to make effective use of the entire infrastructure of communication technologies. In a globalized and increasingly competitive world, innovation is fundamental to achieve economic and human development, since the knowledge economy is the one that produces more profit today and in the future. So, the countries that innovate the most are the leaders, while those that stagnate or regress, will be prey to their lack of innovation becoming countries dependent on value-added products from their borders.