On the interdependence of competition, innovation, and competitiveness of enterprises

The evolution of the theory of competition is considered, theoretical views on its interpretation by representatives of various economic schools (directions) are characterized. It is substantiated that in modern conditions the theory of competition enters a new stage of development – innovative when the competitive advantages of enterprises are determined by their ability to create and implement innovations. It is proved that there is a close connection between innovation activity, competition, and competitiveness of the enterprise. Competitiveness, caused by innovation, is a critical factor in the enterprise's long-term growth under stiff international competition. Competitiveness reflects the existence of enterprise's competitive advantages, which are formed due to its ability to effectively use available resources and to implement them in products (services). It is determined that the constant monitoring of the level of economic competition and enterprises' innovative activity are prerequisite conditions for sustaining and building the competitive advantages of the enterprise.