SUBSTANTIATION OF THE STRATEGY FORMING PRACTICABILITY FOR THE INNOVATIVE ACTIVITY OF INDUSTRIAL ENTERPRISES

Abstract

This article deals with the innovative strategy of the company’s development as one of the main factors in the development of the company’s competitiveness. Available approaches to building a strategy for innovative development of industrial enterprises have been analyzed. It has been established that the approach to the management of innovative development of the enterprise can be defined as strategic management. It also has been established that the sustainability of the innovative development strategy of the enterprise has a priority value, increasing the cost of the economic and social consequences of its decisions and actions implementation. The purpose of the research has been determined – substantiation of the practicability of forming a strategy of industrial enterprise innovative activity as a guarantee of strengthening competitive positions, meeting the needs of consumers, and further development of the enterprise. The outcome of the development of any business largely depends on the combination of strategies it chooses and the tools it uses for that. Innovation strategy is one of the main strategies of enterprise development. An innovation strategy is a plan used by a company to encourage advances in technology or services, often through investment in research and development. The goal is to create a mechanism of effective organizational and economic management that can contribute to the innovative development of the enterprise. Innovative strategies are necessary for companies that want to gain a competitive advantage. After all, modern market conditions provide for a fast pace of product life cycles; new discoveries are made and new products are manufactured every day. This article presents the relevance of innovation strategies and the types of innovation strategies considered by various authors. The problems of this topic, the authors who explore the subject are brought into sharp focus. The main tasks of the innovation strategy are shown. The stages of its formation and principles of construction are considered. It has been analyzed that whether the innovation process is revolutionary or evolutionary depends on the trend chosen by the company, as well as on its effective strategy of innovative development. For another thing, the level of intellectual resources of the company and human intellectual capital will also play a significant role in determining the result of this process. It was concluded that the process of determining the direction of innovative development of these enterprises can be compared with the development of an innovative development strategy. It was determined that the innovative strategy of the organization should be considered as a system of enterprise actions, aimed at achieving the long-term goals of its activity, further development, strengthening competitive positions, satisfying consumer needs, ensuring steady demand for products, through the use of complex considerations of the external and internal environment, influence, determination of strategic innovation goals and development indicators, and formation of a system based on this trends of innovative development, types of market strategic behavior, distribution of innovative achievements, etc. The questions that need to be answered when forming a strategy are identified: How do innovations create value for potential customers? How will the company distribute the value of the innovations that gave rise to them?