Competition and innovative activity as a basis of the intensive economic development model

The problem of economic development of Ukraine is considered in the article. The set-theoretic model of intensive economic development is offered. It contains those components that predetermine the success of this process. These include: competition, the conditions for competition formation and protection, innovative activity, innovation, innovative potential, human potential, the knowledge economy, the links between the components of intensive economic development, the factors of influence on the developing components of intensive development of the economy. It is offered to attribute intellectual, scientific, research, informational, technical, financial components to the innovative potential, which could potentially contribute to the generation of innovations and their transfer for implementation. The most significant components of the model are competition and innovative activity, which, as a result of cyclical interconnection, can reinforce each other. Competition and its strength between business entities (countries) stimulates the intensity of innovative activity, because it implements their desire to obtain competitive advantages and stay competitive. Due to the increase in the intensity of innovation activity, more innovations are generated and introduced, which leads to increased competition. It was found that the most developed competitive countries have a high level of competition in domestic markets. It stimulates innovative activity and formation of innovative business opportunities, which ensure high positions in the Global Competitiveness Index ranking. The positions of Ukraine in the Global Competitiveness Index are examined. It receives low ratings. The necessity of providing conditions for competition formation and protection is justified for Ukraine. The states providing such conditions stimulate, in essence, the innovative activity of their business, which is confirmed by their positions in the international competitiveness rating.