IMPACT OF DIGITAL TRANSFORMATION ON ENTERPRISE INNOVATION

  • Ievgen Portnoi Educational and Research Institute of Management, Economics and Business of the Private Joint Stock Company “Higher education institution “The Interregional Academy of Personnel Management” https://orcid.org/0009-0009-9030-4377
Keywords: innovations, innovative activity of enterprises, innovative activity, digital transformation, digital innovations

Abstract

The article is devoted to an important problem of substantiating theoretical aspects and developing practical recommendations on the impact of digital transformation on the innovative activity of enterprises. The definition of the concept of "innovation activity" as all scientific, technological, organizational, financial and commercial steps that actually or are intended to lead to the introduction of innovations is presented. The volume of state budget allocations for R & D, gross domestic expenditures of private enterprises for R & D and the share of gross domestic expenditures of enterprises in% of EU GDP in 2023 are analyzed. The content of the concept of an innovative-active enterprise is defined as participating in one or more types of activities related to the development or implementation of new or improved products or business processes at a certain point in the observation period. The data of the reference survey on innovations in companies are given – the total number of units of innovatively active enterprises in the EU countries and statistics from the state statistics service of Ukraine in 2022, as well as the share of innovatively active enterprises in the EU countries: Belgium (70.3% of all enterprises), Greece (65.5%), Germany(63.6 %), the Netherlands (63.4 %), Italy (63.1%). The results of innovation activity at the micro and macro levels are revealed: the importance of innovation for the enterprise is a competitive advantage, maximum return on investment (ROI), increased productivity, positive impact on corporate culture; the role of innovation in society is to influence economic growth, the future of jobs, improving well – being, reducing poverty, hunger, diseases, expanding communication and access to education, improving environmental sustainability. Digital innovations are defined as new or improved products, processes, services, or business models created using digital technologies and methods. The positive impact of digital transformation on the innovative activity of enterprises is revealed: increasing the intensity of research and development, contributing to obtaining high-quality information resources, making autonomous decisions, deeper integration of big data programs into traditional value creation activities, etc.

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Published
2025-01-17
How to Cite
Portnoi, I. (2025). IMPACT OF DIGITAL TRANSFORMATION ON ENTERPRISE INNOVATION. Sustainable Development of Economy, (4(51), 368-375. https://doi.org/10.32782/2308-1988/2024-51-52