SUPPORTING THE DIFFUSION OF INNOVATIONS IN SMALL AND MEDIUM ENTREPRENEURS

This article draws a parallel between the diffusion of innovation and the level of profitability of Ukrainian enterprises. The conceptual and categorical analysis of the term «diffusion of innovations» is carried out. The basic principles of innovative solutions are indicated as the basis for information support of innovative activities. These principles include: the natural nature of innovation, analytical solutions, validity, voluntariness, partnership between all participants in the innovation process. It is emphasized that non-observance of these principles makes it impossible to make a voluntary or collective decision and presupposes the adoption of an undesirable innovative decision for enterprises, which, unlike a collective one, is made not by the social system, but by a group of people with influence or power. Shown are regional disparities in terms of profitability (loss ratio) of large, medium and small enterprises in 2015–2019. The difference between the level of profitability of large, medium and small enterprises by region is due to regional imbalances in social, economic, environmental and political and legal development. Separately, a comparison was made of all economic regions for a deeper understanding of the country's innovative potential and cluster analysis in further scientific research. It is emphasized that it is the profitable activity of enterprises that is the first step towards innovation. The calculations showed the level of readiness and ability of citizens to do business in the country. A fuzzy relationship has been established between the profitability of Ukrainian enterprises and their innovative activities. The main problem for small and medium-sized businesses in Ukraine, as well as for businesses in European countries, is the inaccessibility of digital production and distribution solutions. The German experience of diffusion of innovations in small and medium-sized businesses was studied, in particular, the attraction of German small businesses to digitalization. Based on the study of foreign experience, a strategic task for Ukrainian small and medium-sized businesses is outlined.