ECONOMIC ESSENCE AND SIGNIFICANCE OF INNOVATIONS IN MODERN ECONOMIC CONDITIONS

Abstract

Goal. Determining the economic essence of innovation based on the analysis of legislative and literary sources. Characterization of scientists' views and highlighting the main approaches to understanding the essence of innovation. Formulation of own vision of economic essence of innovations as a factor of development and competitiveness in modern conditions of dynamic changes. Method. To achieve this goal, a systematic approach, deductive method, comparison, grouping, generalization, analysis and synthesis are used. Results. Innovations are the introduction of new - new technologies, products, services, organizational solutions, business models that provide results in the form of economic, scientific and technical, social, informational, environmental effects and competitive advantages. Innovation is seen as an idea, a creative source of creating new, better, original, more effective, as a special means of adapting to the market and consumer needs. Innovation as a process reflects the need for innovation in today's competitive environment. Indicates the existence of life cycles of innovation from the origin of the idea and its justification to implementation and practical use. Innovation reflects development, emphasizing its dialectical connection with economic fluctuations. Scientific novelty. The definition of innovation as a result of the idea in the form of introduction of new or improved technologies, products, services that have economic, social and other effects in the process of development and gaining competitive advantage. The formulated definition includes selected approaches to the consideration of innovation as a technology, product or service (introduction of a new one); as an effect, a result; as ideas; as a process; as development. Practical importance. A comprehensive understanding of the essence of innovation on the basis of key aspects of its sources and impact on the competitiveness of economic entities will better identify the types of innovations, their characteristics, evaluation of efficiency.