Innovation as imperative for competitiveness of transnational corporations in global markets

Oleg Gavrysh and Iryna Karpenko
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Oleg Gavrysh: National Technical University of Ukraine "Igor Sikorsky Kyiv Polytechnic Institute"
Iryna Karpenko: National Technical University of Ukraine "Igor Sikorsky Kyiv Polytechnic Institute"

Economic Synergy, 2023, issue 1, 136-150

Abstract: The purpose of the article is to define innovation as an imperative for the competitiveness of transnational corporations in global markets. The article identifies the peculiarities of competition in the global market in the XXI century. It is established that the strategies of TNC development are stimulation, creation and use of innovations through human intellectual activity aimed at qualitative improvement of efficiency of production systems and creation and launch of products with new, better consumer properties, and, as a result, gaining competitive advantages. Today's global economy is an information and networked economy, in which new types of business are emerging, the structure of industries is changing, and there is a general transformation of the content of competition, its rules are being improved, new competitive advantages are emerging, providing companies with new opportunities to conquer the market. Under such conditions, the economic category of «competitiveness», while retaining its main property – the ability of a subject of competitive relations to ensure competitive advantages, is gradually becoming global in nature – it is transforming into global competitiveness and is becoming increasingly focused on innovative development using advanced innovations, which significantly affects the interests of market participants (partners, competitors, consumers, etc.). The features inherent in global competitiveness that clearly determine the competitive advantages of the leading countries and advanced TNCs are highlighted. The innovative component of global competitiveness of TNCs is considered. In order to ensure global innovation competitiveness and maintain leadership positions, TNCs immediately develop, produce and promote advanced innovations – innovative products, technologies, services, competencies, methods of competition that are in high demand in world markets. The characteristics of high-tech TNCs are determined. The ranking of the most innovative TNCs and the dynamics of investments in R&D and net sales of investor companies from the EU, the USA, China, Japan, and the world as a whole are analyzed. In the XXI century, a key role in global economic development processes belongs to innovations synchronized with the achievements of scientific and technological progress, which ensure undeniable success in the competitive struggle of both countries and individual TNCs that supply a significant share of high-tech products to global markets.

Keywords: innovations; competitiveness of transnational corporations; information and network economy; global innovation competitiveness (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bja:isteus:y:2023:i:1:p:136-150

DOI: 10.53920/ES-2023-1-11

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