Concept, the essence of innovation and technological structures of agricultural business at enterprises in Ukraine

Abstract

Purpose. The purpose of the study is to: generalize scientists' interpretation of the concept and essence of innovation; providing their author's definition; assessment of the development level of agro-industrial business in Ukrainian enterprises by technological structures; theoretical and methodological substantiation of the principles and development of practical recommendations aimed at the objective necessity of innovative activation development and increase of competitiveness of the agro-industrial business enterprises in the conditions of economy globalization. Methodology of research. The basic principles of economic theory, scientific works of domestic and foreign scientists, legislative and normative acts of the state authorities of Ukraine on the issues of innovative development of agro-industrial complex became the theoretical and methodical basis. The following research methods have been used: the dialectical method of cognition – in the study of transformational changes in the process of innovative development of agribusiness; historical – in the study of the evolution of innovation and the formation of technological structures for economic development; theoretical generalization and comparison – to study scientists' interpretation of the concept and nature of innovation; monographic – for coverage of indicators by technological structures; abstract and logical – in the theoretical generalization of the essence, the author's interpretation of the concept of innovation in the agro-industrial business, coverage of the content of scientific work and the formation of conclusions and proposals from this study. Findings. The article describes the historical process of innovative development of national economies of the world. It is concluded that innovation is the main functional characteristic of doing business. The goal of the entrepreneur is to use new, resource-saving technologies to produce high quality products, increase their sales, income and profits, achieve economic and social effects. Historically, 7 major technological structures have been identified. Each technological structure is distinguished by the development of a certain set of basic knowledge-intensive industries and technologies, characteristics of the organization of production, and is reflected by the relevant indicators of the latest achievements of scientific and technological progress. In developed countries (USA, Germany, England, France, Japan, China, etc.), technologies of the 5th form (period of its dominance 1970-2010) prevail and technologies of the 6th technological structure (period – 2010-2040) are formed). The industry of Ukraine, so far, is characterized mainly by technologies of the 3rd and 4th technological structures, their share in industrial production occupies about 96% and the share of industrial production of the 5th and 6th technological structures – 4%. In Ukraine, both the volume of production and the investment of capital for technical re-equipment and modernization are mainly at the level of the 3rd technological structure. Therefore, domestic industrial and food products cannot be competitive in the global market. Originality. The author's interpretation of the concept of "innovation in the agro-industrial business" is proposed. It is the accumulation of new knowledge, materialized: in high-efficiency, resource-saving technologies, technological elements; new varieties and hybrids of plants, breeds and breed groups of animals; machines, equipment, working parts and mechanisms; new types of fertilizers, chemical plant and animal protection products; new progressive forms of organization of production and labour, types of services, etc., established in research institutions recognized as expedient for use in practice, ensuring the economic and social efficiency and competitiveness of agro-industrial production. Practical value. Scientific, methodological and practical recommendations have been proposed, which makes it possible to develop the basic organizational, economic and managerial aspects regarding activation of capital investment for technical re-equipment and introduction of innovative, resource-saving technologies in the components of agro-industrial business of Ukraine. Key words: innovation; innovative process; innovative technologies; costs; economic effect; social effect; agro-industrial business; technological structures; product quality; competitiveness.