THE IMPACT OF INNOVATION ON COMPETITIVENESS

This article aims to assess the impact of innovation on competitive advantage and the need for innovation in entrepreneurship to maintain the level of competitiveness of enterprises. The research was carried out by comparing and comparing the theoretical and practical results of specialized scientific works. The statistical regularities of the competitiveness of innovative and non-innovative enterprises were considered according to the data of the largest analytical publications. The article also provides examples of possible changes in the competitive struggle when using innovations both in enterprises and in the economy. The main result of this work was the identification of competitive advantages in the use of innovations. Achieving an advantageous position in a competitive environment depends on identifying the right strategies and creating different values. The dynamic market structure, different market conditions and the presence of innovative competitors make the competition even more intense. Currently, goals such as increasing productivity and profitability, entering new markets and improving existing market shares are achieved through innovation. Therefore, companies make every effort to develop innovative skills, acquire sustainable capabilities and improve their performance. In this context, innovation is one of the most important elements of competitive advantage. It is also important to manage this as a process. To determine the effectiveness of innovation, it is very important to take into account all the factors affecting the innovation management process using a holistic approach. While the correct identification of the required technologies and management is an important element of innovation management, human and structural adjustment of the organization is also becoming increasingly important for innovation. In a global competitive environment, organizational and managerial innovation is the key to the success of companies. While technology and research and development have significantly impacted organizational structure and culture, the right management of innovation provides a competitive advantage.