Innovation, Investment, and Competitive Performance

Abstract

This chapter illustrates the role of investment and innovation in enhancing business competitive performance. The efficiency of investments sponsoring innovative activity is quantitatively assessed on the basis of the mathematical model elaborated specifically in order to classify enterprises within the industry and facilitate efficient management of investment flow sponsoring innovative activity. The authors present a system of generalized indicators reflecting the interconnection between the technical level of production and the profits and allowing to assess foreground investment activities depending on business production capacity. The chapter uses mathematical evidence to justify the inference suggesting that economic stability primarily depends on proper technical and economic policies regulating product update, resource conservation, equipment upgrade, efficient utilization of computing technology, and creation of automated productions. The authors build a generalized integral model revealing the cohesion between competitive capacity and innovative development, based on the analysis and assessment of strategic risks within the overall risk flow in the context of the global economic crisis and postcrisis period using information technology and computing systems.