Innovation Activity Of Enterprises Research Articles

Using Overseas Experience in Tax Motivation of Innovation Activity at Real Sector Enterprises in the Republic of Uzbekistan

Innovation technologies penetrated all spheres of economy in many countries of the world and Uzbekistan is one of them. The reforms being carried out in social and economic life of the country require innovation ideas and technologies. The article analyzes positive overseas experience and practice of using tax systems, which can promote the development of innovation activity and shows the impact of taxation on innovation activity. The subject of the research is mechanism of tax motivation of innovation activity at enterprises of real sector of economy. The author proposes steps aimed at improving economic efficiency of tax motivation in the field of innovation activity of enterprises in the Republic of Uzbekistan, as taxation system plays the most important role in supporting innovation. Mechanisms of tax motivation include creation of such conditions that can promote demand for innovative products and investment into new technologies.

Enterprise sustainable development and green fund concern: The analysis and test of R&D from listed companies in China

According to active ownership, the development of green funds in the capital market should promote the sustainable development of enterprises. However, when green funds practice green screening strategies, myopic managers may ignore the long-term innovation activities of enterprises because of the attraction of capital flow and the construction of managers' reputations. This study uses long-term and external corporate R&D to explain changes in green fund holdings and further examines the impact of fund characteristics and corporate heterogeneity on green fund holdings. The results show that the greater the corporate R&D, the less the green fund holdings, and the better the short-term financial performance, the weaker the negative relationship, indicating that green funds may be myopic and not concerned about corporate innovation. In particular, this study did not find that the traditional fund adopted a negative screening strategy for enterprises like the green fund. In addition, myopic green funds pay more attention to capital flow attraction and performance ranking improvement and do not pay attention to long-term, sustainable, and market-oriented corporate governance behavior. This conclusion has important implications for understanding and developing China's green fund market.

How Does Firm-Level Economic Policy Uncertainty Affect Corporate Innovation? Evidence from China

Innovation is the main driving force of the sustainable development of enterprises. Economic policy uncertainty has increased dramatically in recent years due to events such as COVID-19, which will alter the business environment of enterprises and ultimately affect their innovation behavior. How economic policy uncertainty will affect corporate innovation has become a crucial topic, but empirical studies have not reached consistent conclusions, and few have noted the heterogeneity of different firms’ perceptions of uncertainty. This study used a textual analysis approach to create firm-level economic policy uncertainty indicators from the texts of annual reports of Chinese A-share listed firms. Based on the effectiveness of our measure of economic policy uncertainty, we further examined its impact on firm innovation. We find that our uncertainty measure has negative effects on enterprise innovation activity, and this negative impact is more significant among non-state-owned enterprises, and firms with higher financial constraints and lower government subsidies. We extend the measurement of economic policy uncertainty from the micro level and provide some suggestions for policymakers at the macro level. In the period of increasing uncertainty in the external environment, the government should try to maintain the stability and transparency of economic policies, and provide more targeted policy support to enterprises, such as by broadening their financing channels and providing innovation subsidies.

Problems of the development of the national innovation system of Kazakhstan and increasing its competitiveness

The national innovation system is the most important factor in achieving the competitive advantages of innovative business, provides access to the necessary resources, including financial ones, the need for which is most acute in the implementation of innovative projects. The article examines the functioning of the national innovation system, where the importance of innovation in the activities of modern enterprises is determined. The study analyzes the structure of the NIS, its functioning, and determines the activity of regional forms of the innovation system. The characteristic of the Institute for the development of methods of financing innovative developments is given. The role of ministries in financing R&D vertically and the National Agency for Technological Development and the DAMU Foundation vertically is established. They provide significant support to the development of the innovation system and increase the innovation activity of domestic enterprises. NIS infrastructure and development institutions generate and transform scientific knowledge into new technologies, products, services, as well as ensure their commercialization. The article notes that one of the main directions of state policy in the field of scientific, technical and innovative activities is the creation of specialized subjects of an innovative nature, such as technoparks, technological business incubators, technopolises, high-tech companies. The article also shows the characteristic disadvantages that are unfavorable for the development of innovation: the underdevelopment of links between university science and industry, the disconnection of the banking sector from lending to innovative processes, low innovation activity of private capital. Research methodology. The methodology is based on a comparative analysis, using the method of systematization, the method of statistical and economic analysis and synthesis, observation and collection of facts to determine the most effective ways to improve the competitiveness of the national innovation system. Based on the foregoing, we believe that business structures, sources of financing and government support directly affect the innovative development of the economy.

IMPROVEMENT OF THE ORGANIZATIONAL AND ECONOMIC MECHANISM FOR REGULATING THE INNOVATIVE ACTIVITIES OF TRANSPORT ENTERPRISES

The article explores the theoretical and methodological aspects of the organizational and economic mechanism for regulating the innovation activity of transport enterprises, identifies groups of factors that ensure the innovative activity of an enterprise, and examines the key factors for accelerating the processes of innovation. It has been proved that innovative activity is determined by two groups of factors that provide the competitive advantage of an enterprise: internal and external. The effective use of internal factors that reflect the essential features of the enterprise, distinguish it from competitors and determine its innovative ability, ensures the establishment and management of innovative activities for the enterprise. Systematized external factors that determine the innovative activity of the enterprise, and its market position. The key factors for accelerating the processes of implementing innovations at the enterprise are identified, the founders of which are the increase in the degree of state participation in innovative processes; simplification of the procedure for passing any innovation from the development stage to the stage of its launch on the market, taking into account cultural, institutional and infrastructural features; increasing the level of market infrastructure development; development of forms of public-private partnership; formation of a regional structure for promoting innovations; improvement of the system of taxation of enterprises engaged in innovation through the use of a system of tax credits for scientific research and development, the use of tax rebates and innovative tax credits; improvement of other ways of attracting capital. The analysis of the current legislation in Ukraine, on the basis of which the innovative activity of enterprises is regulated, is carried out. Based on the analysis, the priority areas of innovation activity in Ukraine, consisting of strategic and medium-term ones, are identified. It is substantiated that the imperfection of legal documents regulating innovation activity in Ukraine slows down the introduction of innovations by transport enterprises. The analysis of economic literature carried out in the article proves the absence of a single acceptable approach for determining an effective organizational and economic mechanism for innovation activity. The priority directions of the innovative development of the transport system are determined and justified according to the criteria of innovation. The necessity is proved and the ways of implementation of the state regulation of innovation activity are proposed. The ways of improving the organizational, economic and legal mechanisms to support and stimulate the introduction of innovations in transport enterprises are proposed.

FORMATION OF INNOVATIVE POTENTIAL OF ENTERPRISES IN THE CONTEXT OF DIGITALIZATION OF REGIONAL ECONOMIC SYSTEMS

The article analyzes the peculiarities of creating innovative potential of enterprises in the conditions of digitalization of regional economic systems. It is determined that the innovative potential can be considered from the point of view of the ability to produce/produce innovations on the basis of continuous, purposeful, professional, client-oriented activity, based on application of progressive knowledge, generation and realization of the most viable ideas, their commercialization, which makes it necessary to effectively cooperate with external environment and system functioning of all components of the enterprise. The interrelation of the components of the potential of the enterprise and peculiarities of its interaction with the external environment is outlined. Factors of formation of innovative potential of enterprises under conditions of innovative and digital tendencies are determined. The general trends of development of innovative opportunities of Ukraine according to the world ratings have been analyzed (World Competitiveness Rankings, Global Innovation Index). The structure of the sources of financing of innovation activity of industrial enterprises and the change of share of the number of innovation-active enterprises in the total number of industrial enterprises is analyzed. Assessment of direct losses in the industrial sector as a result of the war was carried out. It is determined that attraction of foreign investors into the domestic economy is possible by means of the use of digital transformation instruments, for example, the electronic platform Advantage Ukraine, as well as through the programs of international assistance, for example: «EU4Business: Competitiveness and internationalization of SMEs». The geography of activity of enterprises receiving microgrants from EU4Business is analyzed. It is well-grounded that digital transformation, dizhitalization has a stimulating effect on the development of all spheres, in particular, on the formation of innovative potential of enterprises. In this context, consistency and systematization are important to ensure an appropriate level of adaptability, taking into account limited resources and the formation of the environmental impact of limited resources.

The Role of Regional Intangible Assets for the Innovation Activity of Enterprises: The case of Polish Regions

Innovative enterprises may undertake innovation activity in the form of research and development (R&D) or the acquisition of already developed technology (imitative innovation). Both types of innovation may influence economic growth or catching-up processes in different ways. Therefore, in the research presented, various types of innovation activity are analysed based on Community Innovation Survey data. The question is how the regional environment, characterised based on the data on intangible assets, affects R&D activity and the acquisition of machinery and software. The analysis was conducted for the years 2004–2014 in 16 Polish regions. Intangible assets were measured using the intellectual capital index. Panel data econometric models were applied to test the relations between various types of innovation activity and intangible assets in the regions. Human capital was found to be positively related to internal and external R&D activity. Life-long learning (one of the human capital indicators) was found to be positively related to the acquisition of machinery and software. Structural capital was found to be positively related to internal and external R&D activity.

Impact of human resource management on improving the innovation potential of an enterprise to achieve the principles of sustainable development

Objective: The article is devoted to the topical issue of the impact of human resource management on increasing an enterprise's innovative potential to implement the principles of sustainable development.
 Methods: Through an analysis of scientific literature, the article analyzes the relationship between human resource development and sustainable development and the essence of human resource management for sustainable development.
 Results: The study identifies the key success factors of an enterprise's innovation activities, which lead to an increase in its innovation potential, and how they relate to human resource management, as well as the basic principles of human resource management based on sustainable development, which promote greater innovation potential of an economic entity.
 Conclusion: Today human resource management aimed at increasing the innovative potential of an enterprise considering the specifics of its activities and the current socio-economic situation, is a key factor contributing to the achievement of sustainable development principles and the strategic objectives of the enterprise. The authors conclude that human resource management based on the principles of sustainable development acts as a component of the organizational and economic mechanisms of their innovative development.

Forecasting the innovation of Ukraine’s economic development in a global dimension

Purpose. To analyze the state and trends of innovative development of the countries of the world, to define the place of Ukraine in the international arena and forecast its innovation. Methodology. The methodological basis was formed by general scientific theoretical methods: generalization, explanation, grouping; statistical method (for a comprehensive assessment of the state and trends of innovative activity of the economies of the countries of the world and Ukraine); methods of analysis and synthesis, economic and mathematical methods of forecasting, methods of abstraction and visualization (for a visual demonstration of the actual data and the results of the study). Findings. The level of innovativeness of the world’s economies and Ukraine’s position in the ranking of the Global Innovation Index (GII) are analyzed. The positive/stimulating influence of globalization processes on the spread of innovations, as well as discriminatory methods of innovative development (“dumping” of second-order technologies in developing countries) are noted. The GII forecast is determined using a regression model of the dependence of this indicator on the specific weight of innovation-active enterprises in the total number of industrial enterprises and innovation costs. The forecasting results showed a slight downward trend in the value of the GII of Ukraine. It is argued that in order to increase the level of innovativeness of the national economy, to strengthen Ukraine’s competitive position, and taking into account the fact that the economies of other countries do not stop in their development, it is necessary to significantly intensify innovative activity in Ukraine. Originality. A scientific-methodical approach to predicting the innovativeness of economic development is proposed depending on the specific weight of innovatively active enterprises in the total number of industrial enterprises and innovation costs. There is an opportunity to carry out predictive and planning calculations of the selected forecasting object, to investigate the behavior of the macroeconomic system in the context of the innovativeness of its development, to make adjustments to the strategic management system at the state level in order to stimulate innovative processes and influence the results of the innovative development of Ukraine in the global dimension. Practical value. The proposed scientific-methodical approach makes it possible to assess the trends of the level of innovativeness of development in the future and becomes an informative basis for developing a system of measures for the activation of innovative activity.

Employee equity incentive, executive psychological capital, and enterprise innovation.

The input and deployment of human resources, such as senior executives and the core employees involved in different innovation processes, is key to developing enterprise innovation activities. Under the same framework, it is crucial to explore how employee equity incentive and senior executives' psychological capital affect enterprise innovation. This paper's research sample comprises listed companies that implemented equity incentives in the A-share market from 2010 to 2021, examining the relationship between executive psychological capital, and enterprise innovation. This study found that: (1) Employee equity incentive and executives' psychological capital can significantly improve the quality of innovation output while promoting enterprises to increase the quantity of innovation outputs; (2) Executive psychological capital contributes to the intermediary effect between employee equity incentive and enterprise innovation; (3) R&D investment has a positive moderating effect on employee equity incentive, senior executives' psychological capital and enterprise innovation; (4) The innovation incentive effect brought by the implementation of stock options by enterprises is more significant, which also makes the psychological capital of executives maintain a positive role in enterprise innovation; (5) In addition, the positive effects of employee equity incentive and executive psychological capital on enterprise innovation are affected by different property rights. The positive effects of employee equity incentive and executive psychological capital on enterprise innovation in state-owned enterprises are not high.

Digital Technology Driving Exploratory Innovation in the Enterprise: A Mediated Model with Moderation

Emerging digital technologies, with their great advantages in resource convergence, opportunity identification, supply-demand docking and knowledge sharing, are breaking and subverting traditional business concepts and providing a new impetus and opportunities for enterprise innovation activities. Therefore, it is valuable to explore how digital technology affects exploratory innovation to gain a sustainable competitive advantage in a dynamic and changing market environment. Based on data from Chinese A-share high-tech manufacturing listed companies from 2012 to 2020, this paper empirically tests the impact of digital technology on enterprise exploratory innovation by using a fixed effects negative binomial regression model and further explores the intermediate mechanism and boundary conditions between the two. The results show that digital technology has a significant positive impact on enterprise exploratory innovation, and that knowledge breadth plays a mediating role; high network centrality can effectively strengthen the positive impact of digital technology on enterprise knowledge breadth, thus promoting enterprise exploratory innovation. The conclusion enriches and expands the theoretical and empirical research on the driving effect of digital technology innovation, and provides strong practical guidance for encouraging enterprises to achieve exploratory innovation.

Internal migration experience and innovation: evidence from entrepreneurs of small and medium enterprises in China

ABSTRACT This study examined the impact of returnee entrepreneurs’ internal migration experience on enterprise innovation and explored possible mechanisms. Using data from the 2018 Enterprise Survey for Innovation and Entrepreneurship in China (ESIEC), which collected a large sample of entrepreneurs from small and medium enterprises, the results of our study showed that entrepreneurs’ internal migration experience positively affected enterprise innovation activities and expenditure. Further, the effects were larger for the entrepreneurs who had the first migration at a younger age and had a longer duration of migration exposure. The mechanism analysis suggested that human capital accumulation was a potential channel underlying the innovation consequences of entrepreneurs’ internal migration experience.

The study on the relationship between venture capital, tolerance to failure, and enterprise innovation performance.

Venture capital not only affects enterprise innovation decisions by providing funds, value-added services and allocating control rights, but also the psychological capital of venture capital can enhance its tolerance for failure in innovation activities of enterprises, and thus have a positive impact on innovation performance of enterprises. This paper uses multivariate and negative binomial regression models, propensity score matching method and Heckman treatment effect model to study the impact mechanism of venture capital on enterprise innovation performance, and the mediation role of venture capital's tolerance for innovation failure in the relationship between the above two; this paper studies the moderating effect of the characteristics of heterogeneous venture capital institutions, such as joint investment strategies and geographical proximity, on the relationship between venture capital failure tolerance and enterprise innovation performance. The results show that venture capital can significantly improve its tolerance for enterprise innovation failure by holding shares and occupying seats on the board of directors of enterprises, thereby bring the increase of the innovation performance of enterprises; if joint investment strategy and close investment are selected, the tolerance of venture capital to innovation failure will have a more obvious effect on the promotion of enterprise innovation performance.

Ensuring the economic security of innovation activities of Russian enterprises

Aim. The presented study aims to develop an economic security management system for innovation activities of Russian enterprises.Tasks. The author identifies the theoretical and practical aspects of ensuring the economic security of innovation activities of Russian enterprises and develops a model for ensuring the economic security of innovation activities with allowance for the identified problematic factors.Methods. This study uses the methods of bibliographic research, system analysis, synthesis, communication, and analogy; information and analytical collections of the Institute for Statistical Studies and Economics of Knowledge of the National Research University – Higher School of Economics; the results of Global Innovation Index research.Results. It is shown that creation of conditions necessary for conducting safe activities in the field of innovation facilitates the implementation of strategic goals to ensure Russia’s economic security and will also allow the country’s economy to switch to an innovative path of development. By investigating the methodology for calculating the global innovation index, the author proves that national policy in the field of ensuring the economic security of innovation activities should be carried out in five key directions: improving the system of institutions engaged in these activities, ensuring human capital development, expanding the strategic infrastructure of innovation activities, developing the domestic market of innovative goods, and developing the business through the application of the results of innovation activities.Conclusions. Implementation of state policy in these areas will make it possible to achieve high indicators of economic security of innovation activities. An unstructured, fragmented state policy that supports only certain key areas will not produce the desired result, which will be expressed in achieving a high degree of protection of innovation activities from internal and external threats.

DEVELOPED MILITARY ECONOMY AS A COMPONENT OF UKRAINE’S NATIONAL ECONOMIC STRATEGY

Purpose. The principles, strategic goals and directions of the development of the military economy in the structure of the national economy and its influence on the formation of the military-economic policy of the state to ensure its modern military-economic security have been determined. Design/methodology/approach. In the article, the author used the following methods: analysis and synthesis – to analyze modern trends and generalize their impact on the formation and development of the military economy; systemic method – to reveal the essence of the military economy through the prism of the formation of military-economic potential and national security; statistical – for ranking the most powerful armies in the world and outlining the military and economic potential of Ukraine; comparison – to determine the volume and share of military defense expenditures of a number of states and the volume of sales of weapons and military services in the world in a geographical dimension; strategizing – for the formation of strategic goals of the policy of the national economy of Ukraine; generalization – when formulating conclusions and recommendations. Based on a review of the literature, the author determined the goals of analyzing the indicators of military and defense spending among a number of countries in the world, the dynamics of sales of weapons and military services, and substantiated the main defense trends of governments and a number of enterprises of many states. The strategic objectives of the policy of the national economy of Ukraine considered by the author made it possible to form conclusions, the reliability of which is based on the interpretation of the indicators given in the analytical part. Findings. The a proven hypothesis that the level of spending on national defense makes it possible to guarantee a high level of military-economic security, which is the fundamental function of the state. This condition in the military-economic potential can be achieved only thanks to the formation of the military-economic concept of the state, which is based on its historical experience, on the study of similar concepts and practices of states with different economic models, which reflect scientific and technical achievements. Also, the requirement of the present and the future is the need to develop special components in the structure of the military economy of Ukraine: nuclear military industry; rocket engineering; aircraft construction; tank construction; shipbuilding; production of artillery systems, rocket launchers and robotic systems, hypersonic weapons, unmanned aerial vehicles, anti-ship missiles and medium and long-range ballistic missiles; production of small arms and ammunition; production of radar surveillance systems, anti-satellite technologies and weapons with artificial intelligence, etc. This will require a constant increase in the military budget and spending on scientific research, as a certain annual share of Ukraine’s GDP Practical implications. The results of this study are of interest to state authorities, business entities in the field of the defense-industrial complex, who seek to expand and modernize the sphere of the military economy, increase the innovative and technological level of military equipment, weapons and dual-purpose products in accordance with the conditions of competitive markets and ensure employment growth at military industry enterprises. In addition, the results can help scientists of higher education institutions to improve tools for expansion of innovative knowledge and build scientific potential in the field of military technologies. Originality/value. This study emphasizes the peculiarities of the formation of the military economy sector in the structure of the national economy and its impact on the investment and innovation activity of industrial enterprises that produce dual-use products. The outline of the defense trends of governments and a number of enterprises of many states made it possible to form the strategic goals of the policy of the national economy of Ukraine in the defense sphere. Provide recommendations to the authorities regarding the development of the military industry and the adoption of a number of institutional decisions at the state level.

Leverage effect or crowding out effect? Evidence from low-carbon city pilot and energy technology innovation in China

Energy technology composed of renewable and fossil energy is not entirely beneficial to the environment. Consequently, we believe that the direction of energy technology innovation should be clean to achieve sustainable development. This paper takes the low-carbon city pilot as a quasi-natural experiment, employs the difference-in-difference method and the energy technology patent data with A-share listed enterprises in Shanghai and Shenzhen from 2007 to 2019 to explore the incentive effect, mechanism, and heterogeneity of low-carbon city pilot on the direction of energy technology innovation. We found that (1) the low-carbon city pilot has an incentive effect on the direction of energy technology innovation by promoting renewable energy technology, which indicates that the clean direction of energy technology innovation is taking shape. (2) The incentive effect of low-carbon city pilot on energy technology innovation is not the leverage effect superimposed on the established innovation activities of enterprises, but the crowding out effect on other technological innovation. This means that the pilot policy is suspected of negatively the productivity of enterprises. (3) The quality of energy technology innovation has not been stimulated, renewable energy technologies that are easy to generate high economic benefits are favored by enterprises, and environmental information disclosure profits to improve the policy effect of low-carbon city pilot. This study provides implications for the effective implementation of environmental policy and the synergistic of renewable and fossil energy technologies.

Will R&D make investors more tolerant? Analysis based on the performance forecast of Chinese listed companies.

In the era of innovation dividends, whether investors, as the main participants in the capital market, can tolerate enterprise innovation activities is the key to whether the capital market can help enterprises innovate. This paper takes the listed companies of Shanghai and Shenzhen A-shares in China that disclosed quantitative performance forecasts from 2016 to 2021 as samples, obtains the market reaction of performance forecasts through the event study method and uses them as proxy variables of investors' short-term performance expectations, and uses multiple regression analysis to explore the impact of corporate R&D on investors' short-term performance expectations. The results are as follows: (1) corporate R&D investment significantly reduces investors' short-term performance expectations (that is, investors have a significant tolerance effect on enterprises with higher R&D investment); (2) the increase in the shareholding ratio of institutional investors weakens the tolerance effect; and (3) with the implementation of China's innovation-driven strategy, the tolerance effect of its capital market on enterprise R&D gradually increases, especially for high-tech companies, but has a low tolerance effect on state-owned companies' R&D risk. The results show that investors in China's capital market are not completely rational in their response to corporate R&D, and investors are willing to bear more short-term performance losses for high R&D investment, which is consistent with prospect theory.

Problems of information support in the management of innovation activities of Russian knowledge-intensive and high-tech enterprises

The current conditions of general economic instability necessitate the activation of national RD, which raises a number of issues related to innovation. One of such issues is the issue of improving the process of innovation management in the aspect of information and related problems. The need to improve the ID management process comes from the idea of increasing the production potential and scientific level of the enterprise, which determines the level and technological equipment with the means and capacities of information processing necessary for making managerial decisions. At the same time, it is important to increase the level of innovation activity of knowledge-intensive and high-tech enterprises, while applying modern management and information technologies, using hardware and software bases and current forms of information presentation. The article will consider the innovative activity of knowledge-intensive and high-tech enterprises in the form of the management process of complex systems with a large number of interrelated elements in the conditions of competition, risks and various factors of information diversity. Thus, one of the determining factors in the development of innovation activities of knowledge-intensive and high-tech enterprises today is the improvement of information and communication technologies for information support of ID management, which directly affect the innovation potential and innovative activity of such enterprises.

Problems of ensuring effective Russian Federation industrial enterprises innovative activities management

The transformational processes taking place in the Russian economy over the past few years necessitate the development of new ways and methods to ensure the effective management of innovative activities of industrial structures. Before starting to solve this problem, it is necessary to identify the key problems that require prompt elimination in order to create a basic platform for improving domestic innovation management. The purpose of the scientific article is to study the innovative activity of Russian and foreign industrial enterprises and identify problems that hinder innovative growth. In the process of achieving this goal, methods of statistical, portfolio, structural analysis and synthesis, generalization, analogy, and system analysis were used. Based on the results of the analysis carried out by the author, recommendations were formed to ensure effective management of the innovation activity of domestic industrial enterprises. Scientific conclusions and proposals are of high importance for the development of theoretical and methodological provisions of innovation management and acceleration of economic and innovative growth of the Russian economy. Thus, the scientific recommendations and conclusions formed in the work can serve as an information base for the management of industrial structures in determining the vector of strategic development and increasing competitiveness. A strategic guideline for further research is the development of author's recommendations for ensuring effective management of innovation activities and improving the methodological tools of innovation management using modern digital technologies.

ОЦІНКА СТАНУ БІЗНЕС-СЕРЕДОВИЩА УКРАЇНИ У КОНТЕКСТІ ІННОВАЦІЙНОЇ ДІЯЛЬНОСТІ

In this study, an analysis of the development prospects of innovatively active enterprises was carried out using the example of the most successful functioning Ukrainian enterprises. It is proposed to estimate the actual annual profit of the business using the indicator of economic added value, which is correlated with the indicators of the efficiency of innovative activity. The evaluation of the actual annual profit of the business using the indicator of economic added value (economic profit) is argued, since the accounting profit is not a qualitative characteristic of innovative development. An assessment of the profitability of the leading innovatively active enterprises was carried out – SE «Prozorro», LLC «Nova Poshta», JSC «Farmak», LLC «Scientific and technical complex «Metalurh», SE «Southern State Design and Research Institute of the Aviation Industry», PJSC «Interpipe». For the overall assessment of efficiency, the weighted average cost of capital, the indicator of economic added value, the return on capital of each of the analyzed enterprises, gross profit and net financial result were calculated. At the same time, it is noted that the cost of equity capital reflects the riskiness of investing in the company's equity capital, while the cost of debt capital is the risk of default by the company and tax benefits associated with the use of borrowed funds. An important remark in the context of this study is the assessment of innovative development, more specifically, the innovative activity of enterprises – in a relatively stable economic time that preceded the war in Ukraine. Because it is clear that a return to the previous indicators and surpassing them is possible only in a relatively stable economic environment. It remains obvious that the increase in the added value of products can be achieved by reducing the volume of intermediate consumption, with the help of improving integration processes, in the creation of chains of added value of products, renewal of production assets, scalability of enterprises, increasing the level of technical and technological equipment of Ukrainian enterprises. Proposals have been made regarding the general system of assessing the business value of innovatively active enterprises of Ukraine. This study is designed to outline the main prospects for the development of innovatively active enterprises of Ukraine.