Agrarian Economy 2019 Т. 12 № 1-2:82-91

INNOVATIVE AND INVESTMENT METHOD OF PRODUCTION POTENTIAL REPRODUCTION AS A FACTOR OF IMPACT ON THE COMPETITIVE CAPACITY OF FARMING ENTERPRISES

Koshkalda I., Doctor of Economics, professor
0000-0003-4855-8890
Kharkiv National Agrarian University named after V.V. Dokuchaiev
Hnatyshyn L., Doctor of Economics, associate professor
0000-0003-4425-0514
Prokopyshyn O., PhD, Associate Professor
0000-0002-7027-3499
Lviv National Agrarian UUniversity

https://doi.org/10.31734/agrarecon2019.01.082

ANNOTATION

The article studies the issue of activation of the reproduction of production potential of farming enterprises on the fundamentals of innovations and investments. It is noted that innovations secure new features and priorities in activity of farming enterprises. Investigation of the cycle of innovation and investment process makes basis for specification of mainly self-reproductive type of that process at farming enterprises. Moreover, foreign investments secure introduction of innovations and dynamic character of reproduction. It is confirmed that innovative forms of management of production and enterprise in total are not just features of modernization of the technical constituent of production potential, but also crucial factors of competitive capacity of farming enterprises. It is argued that application of innovations causes changes of efficiency of reproduction of production potential of farming enterprises, appearance of scientific-technical, social, ecological and economic effects. Moreover, level of innovations of production potential depends on innovative activity of farmers, i.e. on capability of enterprises to introduce innovations in production processes. The article presents authors’ interpretation of innovative activity as a process, focused on increase of capital (its reproduction), which is realized through the capability of farming enterprises to create new products, objects, technologies, processes. It is stressed that internal reserves, particularly profit, considerably restrict the possibilities of farming enterprises to introduce innovations. Thus, the developed model of the investment mechanism of reproduction of production potential of farming enterprises on innovative base suggests budgets of amalgamated territorial communities as one of the sources for investing of innovative projects of farming enterprises. Under conditions of improvement of the taxation system of farming enterprises, the income, obtained due to introduction of innovative technologies, will secure additional revenues to local budgets.

KEY WORDS

farming enterprises, innovations, investments, competitive capacity, innovative activity, production potential, reproduction

FULL TEXT

LINK

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Article received 09.04.2019.