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M$2 Answers
As the story progresses, he grows into a very clever protagonist. He relies more and more on his wits and gumption to get the group out of any number of tricky situations (the trolls, escaping the elves, and finally acquiring Smaug's treasure.) He also becomes more comfortable in the wide world beyond the Shire, though I believe that is more visible in the wistfulness he shows for his previous adventures in The Fellowship of the Ring.
The Hobbit by JRR Tolkien
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M$
To the best of my knowledge, The Hobbit was sort of a prequel to the Trilogy and really set up the power of the ring and its effect on its current "owner." Remember at the end that Bilbo came close to not being able to give it up? Left to his own devices, with no ring, I think he would just have remained an elderly, comfortable Hobbit. But then, of course, we would not have had the story!
The Hobbit
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M$
Thank you. Great answer.