INNOVATION AS THE MAIN FACTOR IN INCREASE IN THE COMPETITIVENESS OF THE NATIONAL ECONOMY

The competitiveness of national economies in the international arena is one of the most pressing issues among modern theories of the development of economic systems. The globalization of the world economy and the openness of national economies intensify competition, leading to the instability of the competitive advantages of the subjects of international eco‑ nomic relations. This requires finding mechanisms for maintaining and developing competitiveness, built on continuous improvement, devel‑ opment of capabilities and flexible adaptation to changes in the global situation and dynamic competitive environment. In the modern world, innovations are the main factor in achieving a high level of international competitiveness, as they cre‑ ate high productivity of production factors, competitive advantages in promising areas and strong positions of national firms in the world market. This is evidenced by the experience of the countries of the world, which occupy leading positions in the rankings by the level of competitiveness of the national economy.