Grinko A., Doctor of Economics, Professor, Head of the Department of Management, Kharkiv State University of Food Technology and Trade, Ukraine

ORCID ID: 0000-0001-5324-6926
e-mail: grіnkо.аllа@gmаіl.соm

Hrynko P., Ph.D. (Economics), Associate Professor of the Department of International Economics, Kharkiv State University of Food Technology and Trade, Ukraine

ORCID ID: 0000-0002-7011-6653
e-mail: pavelgrinko@gmail.com

Innovative Business Development as a Basis for the Digital Economy

Introduction. In today’s environment, business is developing under the influence of digital transformations and depends on adaptation to new conditions of economic relations. Particularly problematic is that the modern economy is characterized by a particularly difficult way of development, which is inherent in the associativity of general sentiments about the population of change, the nature of which determines the content of transformations in economic systems. Ukraine’s macroeconomic indicators remain at the periphery of world investment flows, which are exacerbated by the insufficient level of investment resources and complicated by the crisis in the world economy.

Purpose. The purpose of this article is to unveil the key points that characterize the innovative development of enterprises as a prerequisite for improving the efficiency of their activities and the study of the main factors that influence the development of the innovation process in the digital economy.

Results. The article analyzes the inflow of direct investments into Ukraine for 2016-2018, examines the terminological apparatus for the nature of innovation and innovation development, and identifies the factors that influence the development of the innovation process. The simplest model of an innovation process, in our opinion, is to group it into separate stages: basic research; applied research: technologies, solutions to special problems, opportunity assessment; experimental design and experimental development; and commercialization. Thus, according to this concept, innovation begins with basic research and ends in the field of product use, and its functional sequence can be represented by the algorithm: scientific knowledge – innovative development – organization of implementation – scope of economic product (economic growth). As for the capacity of innovation, it varies depending on the technological level, the adaptive capacity of the environment and the external economic conditions.

Conclusions. Innovative investments represent one of the main forms of real investments, which are realized in the process of innovative activity of the enterprise. Reorientation of the country to sustainable development is possible only with the large-scale implementation of innovative projects. The transition to an innovative model of economic growth is one of the main tasks of the state in the near future.

Keywords: innovations; innovative development; digital economy; management; investments.

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