The role of innovation and investment activities in increase of enterprise profit

Semenova Valentyna
D.Sc. (Economics), Professor, Department of Enterprise Economics and Entrepreneurship Organization, Odessa National University of Economics, Odesa, E-mail: semenova_vg@ukr.net, ORCID ID: https://orcid.org/0000-0001-5194-4878

Pavlova Olena
Master's degree in Department of Enterprise Economics and Entrepreneurship Organization, Odessa National University of Economics, Odessa, E-mail: elenagamora7@gmail.com, ORCID ID:

Cite this article:

Semenova V., Pavlova O. (2022) The role of innovation and investment activities in increase of enterprise profit. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Rol innovatsiino-investytsiinoi diialnosti u zbilshenni prybutku pidpryiemstva; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 9-10 (298-299), pp. 118-123.

Abstract

The article examines the role of activation of innovation and investment development on the growth of the company's profit. The essence of innovation and investment activity is considered, its main directions are highlighted to ensure effective activity in the conditions of a changing highly competitive environment. The main goals of the implementation of innovation and investment projects have been determined. The essence of innovation and investment activity is considered, its main directions are highlighted to ensure effective activity in the conditions of a changing highly competitive environment. The main goals of the implementation of innovation and investment projects have been determined. The main directions of profit maximization of the enterprise in modern business conditions are considered: expanding the range of products (services at the enterprise; maximizing the price of products (services); reducing production costs (providing services); increasing the volume of production (providing services). The main factors that are the reason for restraining the growth and disclosure of innovative potential are highlighted, including: limited funding sources; significant costs for the implementation of innovative projects; high level of economic risk; lack of demand for innovative developments; lack of effective legislation in the field of innovative activities of enterprises; lack of highly qualified personnel to implement innovative projects; imperfection of the motivational mechanism of innovative activity at enterprises, etc. The main directions of improvement of the management of innovative and innovative development of the enterprise and improvement of the efficiency of the specified processes in the context of the growth of the enterprise's profitability have been determined. These include: determination of possible sources of investment in innovative activity; formation of a portfolio of innovative projects in accordance with the strategic goals of the enterprise's development; involvement in innovative programs and grants (domestic and foreign); coordination of innovative projects with development programs of individual regions and united territorial communities; formation of a system for stimulating innovative development at the enterprise, etc.

Keywords

innovations, innovation-investment development, enterprise profit, activity efficiency, factors of the external environment, competitiveness.

JEL classification: L320; DOI: 10.32680/2409-9260-2022-9-10-298-299-118-123

UD classification: 658.155.2:658.589

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