Suleymanov G. S., Karayev R. H. Innovative criteria of competitive economic development of entrepreneurial activity in manufacturing industry // International scientific journal "Internauka". Series: "Economic Sciences". - 2018. - №3. DOI: 10.25313/2520-2294-2018-3-3488
Экономика и управление предприятиями
UDC 338
Suleymanov Gazanfar Salman
Doctor of Economics, Professor
Azerbaijan State Oil and Industry University
Karayev Rafik Humbat
Dissertant of
Azerbaijan State Oil and Industry University
INNOVATIVE CRITERIA OF COMPETITIVE ECONOMIC DEVELOPMENT OF ENTREPRENEURIAL ACTIVITY IN MANUFACTURING INDUSTRY
Summary. The experience of developed countries in market relations shows that the basis of the economy is the entrepreneurial activity of the country. Sting, intelligence activity provides a healthy competitive environment in the country. That is, competition in the field of entrepreneurship stimulates the development of all production processes prior to consumption. Competitiveness in entrepreneurial activity is associated with the introduction of innovations and their implementation. Competitive economic development of entrepreneurial activity in the manufacturing industry directly depends on the innovative development of the industry and its effective work. Innovative progress plays an important role in the economic development of the country's economy, including in the processing industry. The countries leading in this area have the opportunity to influence the improvement of the economic process.
Key words: financial stability, monetary policy, privatization, state ownership, relative ratio.
The Concept "Azerbaijan 2020: A Glimpse into the Future", "The State Program for the Development of Industry in the Republic of Azerbaijan for 2015-2000", "The Strategic Roadmap for the National Economy of the Prediction of the Republic of Azerbaijan" by the President of the Republic in recent years on the competitive development of entrepreneurial activities in the country, and a number of other laws, orders, decrees and development concepts.
The main strategic goals in all these laws and development concepts are:
Successful implementation of strategic goals requires the creation of economic mechanisms that can assess the competitiveness of entrepreneurial activities in the manufacturing industry, allowing to determine the competitiveness of the industry as a whole.
To this end, in the proposed economic mechanism, all innovative indicators and criteria were formulated to assess the competitive development of the manufacturing industry. The structural diagram of the algorithm for implementing this economic mechanism is as follows *(Figure 1):
*Fig. 1. Block diagram of the algorithm evaluating the competitiveness of entrepreneurial activity in the processing industry
The economic essence of this algorithm is this:
In addition, based on the research of other economists in the manufacturing industry in the country, it is possible to expand the composition of innovative factors that affect the competitiveness of entrepreneurship in the manufacturing industry:
Based on these criteria, factors that hinder the competitive innovation of entrepreneurial activity in the manufacturing industry are grouped as follows
Table 1
Factors that hinder the competitive innovation of entrepreneurial activity in manufacturing industry and the number of experts evaluati
|
The number of experts evaluating the factors that prevent innovations |
||||
2012 |
2013 |
2014 |
2015 |
2016 |
|
Total factors, including |
806 |
805 |
690 |
674 |
751 |
Economic factors |
333 |
332 |
302 |
263 |
303 |
Production factors |
268 |
264 |
214 |
227 |
254 |
Other factors |
205 |
209 |
174 |
184 |
194 |
Source: Based on the 2017 report materials of State Statistical Committee of the Republic of Azerbaijan.
It should be noted that the group of economic entities in the manufacturing industry did not have sufficient financial support from its own funds and government subsidies, low demand for fresh products, low innovation costs, high innovation costs, high economic risks, including the late payment period. Factors of production include low innovative capacity of enterprises, lack of information about new technologies and sales markets, lack of innovation from the enterprise and lack of cooperation with other enterprises and scientific organizations. Other factors include the need for products that are not the result of previous innovations, the lack of legislation and regulations that regulate and motivate innovation, the uncertainty of the innovation process, innovative infrastructure (mediation, information, law, banking and other services) including low level of evolution.
All this makes it necessary to implement a project to eliminate factors that impede the competitive development of the manufacturing industry.
It should be noted that to ensure the competitiveness of manufacturing enterprises, this forecast should be controlled by the manufacturing enterprises, enterprises, enterprises and the entire market for 3-4 years.
On the other hand, competitive economic development of entrepreneurial activity in the manufacturing industry directly depends on internal and external factors. Therefore, it is important to consider these factors for innovative development of the field. These factors are as follows:
In addition, it should also take into account that increasing investment attractiveness by reducing the risks that may arise in the area of competitive business development in manufacturing and product growth. At the same time, state support should play an important role in increasing the competitiveness of entrepreneurship in the manufacturing industry, its competitive development, increasing innovation efficiency, processing of raw materials and modern technologies.
Conclusion. If we summarize the results of research on the competitive economic development of processing enterprises and research at the international level, it would be desirable to consider the following innovative criteria in order to be effective for the effective functioning of entrepreneurial activities in the processing industry:
References