The essence of innovation and innovative development of enterprises

Abstract

Dynamic changes in the national economyʼs functioning conditions and global challenges underscore the need to rethink the essence of innovation as a key factor in enhancing enterprise competitiveness. In modern transformational conditions, innovation activity is driven by the need to update production processes, optimize organizational structures, and expand market opportunities. Purpose. The purpose of the study is to substantiate theoretical approaches to defining the concepts of «innovation» and «innovative development of an enterprise», as well as to form the authorʼs definitions based on interdisciplinary analysis. Methods. The research process employed methods of system analysis, logical generalization, content analysis of scientific sources, and the method of structuring and comparison. The theoretical basis was modern scientific approaches to interpreting key concepts, as well as data from national and international analytical reports. Results. As a result of the analysis, classification approaches to dividing innovations were systematized depending on the sphere of origin, nature of implementation, level of impact and consequences for enterprises. It is substantiated that innovation should be considered not only as a result of scientific and technical creativity, but as a complex process of transforming knowledge into socio-economic value. The proposed author’s definition of innovation is based on functional, productive and value characteristics. The author’s definition of innovative enterprise development as a systemic process of adaptation, renewal, and growth, based on the implementation of innovations that account for changes in the external environment, is also formulated. Conclusions. The practical value of the results obtained lies in the formation of a systematic understanding of the essence of innovation and innovative development of enterprises, which creates a basis for further research in the field of innovation management. The scientific novelty of the study lies in the clarification of the concepts of «innovation» and «innovative development of an enterprise», as well as in the systematization of classification approaches to types of innovations, taking into account the applied direction of economic activity of enterprises. Prospects for further research include the development of indicators to assess the level of innovative development among enterprises and modeling strategies for their adaptation to global transformations.