Innovation as a means of competitive advantage engineering companies

The study is a synthesis of theoretical approaches to the definition of innovation as a means to ensure competitive advantages of machine-building enterprises. The author gave a description of the state, threats and opportunities of engineering Ukraine. Author identified the most important competitive edge engineering company based on innovation: investment and innovation, the share of expenditure on innovation as % of revenue, the dynamics of new technology, the incidence of new technologies, the duration of the life cycle of product innovation, the intensity of technological diversity, leadership in technology development, leadership in the development of new products, etc. The strategy of competitive advantages based on innovation should be economically, technologically and socially feasible. It should be based on analysis of a variant of the external and internal environment.