RESEARCH ON TRANSNATIONALISATION OF ECONOMIC ACTIVITY INNOVATIVE COMPONENT INFLUENCED BY THE COVID-19 PANDEMIC

Abstract

The purpose of this article is to examine the innovative component of the transnationalisation of economic activity under the influence of the COVID-19 pandemic. Statistical and analytical systems analysis methods make it possible to determine the trend of research and development (R&D) expenditures in the world over five years (2017-2021). Methodology. Research methods: theoretical generalization, analysis and synthesis, logical, system-structural analysis of economic processes and relations, statistical, comparative, sectoral and dialectical approaches. Results. In accordance with the theoretical study of the process of investment in innovation by TNCs under the influence of the COVID-19 pandemic, we conclude that innovation for multinational corporations is the realization of innovative and creative ideas, which are the basis of progress and profit. The balance of power in the global innovation space before and during the COVID-19 pandemic is demonstrated by examining the dynamics of innovation in countries and regions. Under the COVID-19 pandemic, companies' R&D spending has fluctuated slightly, while global R&D spending has increased. According to the Global R&D Finance Forecast 2021, Asian countries, including China, will act as the engine of innovation in the coming years. Countries in the Americas and Europe will continue to lose their leadership in R&D, even though their spending will rise as the overall global economy recovers. One of the key indicators of innovation development is the quota of expenditure on research and development in GDP in the world. The leaders in this indicator are South Korea, Israel, Japan, Finland, and Sweden. Practical implications. Innovation is recognized as a central factor in economic growth and development. Interest not only in the promotion but also in the evaluation of the results of innovation activities is growing not only in developed but also in developing countries. According to The Future of Post-COVID Innovation Finance GII (Global Innovation Index 2020/2021), the pandemic crisis had a short-term impact on innovation spending. Research and development (R&D) spending in connection with the COVID-19 pandemic has always been high. In contrast to previous fears, the crisis has had only a minor impact on overall investment in innovation, as well as on the main consumers of innovation. At the company level, the COVID-19 pandemic has affected the industry distribution of innovation, but costs and access to innovation financing in developing countries and more volatile companies are at risk. Disparities in access to innovation finance are likely to intensify. Value/originality. The main international research units of TNCs are concentrated mainly in the United States, Western Europe, and Japan. But according to recent global trends, there is a possibility of creating new research units of transnational corporations in China and India, which will allow these two countries to become part of the "innovation core" of the world economy in the future.