Forming a Sustainable Competitive Advantage Based on Innovation in the Context of European Union Requirements
Forming a Sustainable Competitive Advantage Based on Innovation in the Context of European Union Requirements

Author(s): Nataliya Pedchenko, Zhanna Kononenko, Vasyl Perebyynis
Subject(s): Politics / Political Sciences, Politics, Economy, Business Economy / Management, Economic policy, EU-Approach / EU-Accession / EU-Development, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: competition; sustainable competitive advantage; economic stability; innovation; European Union
Summary/Abstract: The theoretical and applied aspects of forming a sustainable competitive advantage for a company based on innovation have been studied. It has been substantiated that in the context of globalisation and rapid technological change, traditional factors of competitiveness are losing their effectiveness, giving way to the decisive role of innovative resources, knowledge and technologies. The aim of the study was to identify key areas for strengthening competitiveness in the Ukrainian and European markets. The essence of innovation as the main source of economic stability is explained, as it allows companies to generate higher economic value and create barriers to entry for competitors. It is emphasised that a sustainable advantage is achieved through a focused innovation strategy, which is implemented through two main vectors: cost leadership (through process innovation) and product differentiation (through product innovation). It has been analysed that intellectual capital (knowledge, skills, patents) is a key strategic resource that shapes technological advantage and the ability to implement one's own innovations or developments. The economic sustainability of such an advantage is guaranteed by legal protection and the complexity of copying. It is shown that the implementation of digitalisation, technological leadership and the development of a culture of innovation are integral components of the modern competitive model. Particular attention is paid to the Ukrainian and European contexts. It is emphasised that closer interaction between business and science, commercialisation of developments and state support for the innovation ecosystem are critical factors for the national economy. Building a sustainable competitive advantage is a systematic, multidimensional process where innovation is the foundation of long-term economic stability. Success is determined not only by a one-off invention, but by a company's ability to effectively transform intellectual capital into technological advantage, ensuring stable growth even in crisis conditions.

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