IMPACT OF INNOVATIONS ON THE PRODUCT MARKET COMPETITIVE DEVELOPMENT
Journal Title: International Journal of Innovative Technologies in Economy - Year 2018, Vol 1, Issue 7
Abstract
Competitive product markets are characterized by aiming at complete consumers’ needs satisfaction, flexible market price making, freedom of economic activity and entrepreneurship, free entry and exit from a market, fair trading and business practices etc. The highest values for the companies functioning at the competitive markets are consumers and consumer needs. Accordingly, all the decisions related to the companies’ activity are being taken not based on the entrepreneurs’ ambitions, but from the perspective of the consumer as the agent of future income and profits. One of the essential characteristics of the markets competitive development is ability of the market players to optimize costs, minimize prices, and improve product quality for the maximum consumer satisfaction. Innovations are one of the means for providing competitive development path. However, the essence of innovations is not only introducing something new, some quality changes of the entrepreneurship activity. This economic category may manifest itself as a barrier for entry into product markets, and may cause emerging of innovative monopolies that eventually influence competitive development. Presented article is dedicated to the outcomes of innovative activity on the marketplace. Interconnections between the competitive environment and innovativeness are being investigated, and as the result, innovativeness is proven a method of overcoming competitive pressure, achieving competitive advantages at the market. It is determined that innovativeness depends on the companies’ size, as the financial capacity for innovations and availability of the labour potential concentrated in the innovative area are higher within big companies. As well the need for innovativeness as the mean for attaining competitive advantages depends both on the industry type and the product market characteristics, where a company is functioning, as there are no needs for competitive advantages at monopolistic markets. Innovations may also appear in natural monopolies as the result of introducing some regulatory policies. Also the causality between companies’ pursuance of uniqueness, the level of national competitiveness – and the innovations is being investigated, as well as the time lag between introduction of innovations and gaining some competitive advantages at the market. Understanding mutual influences of innovations and product markets competitive development is the clue for taking proper decisions by regulatory bodies with respect to markets development. Appearance of innovative monopolies aggravate the demand for regulatory bodies control over product markets development with the purpose of preventing excessive use of the market power by innovative monopolies.
Authors and Affiliations
Zhanna Poplavska, Natalia Mykhalchyshyn, Oksana Goshovska
Keywords
Related Articles
- EP ID EP562856
- DOI -
- Views 123
- Downloads 0
ШЛЯХИ ПІДВИЩЕННЯ РОЛІ КОНТРОЛІНГУ В ПРОЦЕСАХ ПЛАНУВАННЯ БАНКІВСЬКОЇ ДІЯЛЬНОСТІ В СУЧАСНИХ УМОВАХ
The authors highlighted the theoretical aspects and the need for the formation of risks controlling in commercial banks of Ukraine in the period of economic crisis recovery. The use of banking controlling is a widespread...
COMPETITIVE SITUATION IN THE RUSSIAN FEDERATION: MODERN TRENDS AND DEVELOPMENT PROBLEMS
The most important element constituting the basis for the functioning of the modern economy of Russia and ensuring the ongoing development of market relations is the competition, understood in a broad sense as a process...
ECONOMETRIC MODEL OF CORPORATION INCOME
the article describes the econometric model of corporation income that was based on the statistics of relevant information of exchange markets and on the financial statements of the companies. The result was revealed the...
ЕКОНОМІЧНЕ ОБҐРУНТУВАННЯ ЗАХОДІВ З ПІДВИЩЕННЯ ЕФЕКТИВНОСТІ УПРАВЛІННЯ ВИРОБНИЧОЮ ДІЯЛЬНІСТЮ ПІДПРИЄМСТВА НА ПРИКЛАДІ ДП «АНТОНОВ»
This article is devoted to economic substantiation of measures to improve the efficiency of production enterprises in Ukraine. Calculations by the author proposed in Article events held at the aircraft construction compa...
ОСНОВНЫЕ ТЕНДЕНЦИИ ИСПОЛЬЗОВАНИЯ ИНСТРУМЕНТОВ ПРОЕКТНОГО МЕНЕДЖМЕНТА В МИРОВОМ ГОСТИНИЧНОМ БИЗНЕСЕ
In this article practical aspects of using project management in popular restaurants of different countries are considered. Within the framework of this study, the experience of using the Hard Rock Cafe project managemen...