doi.org/10.52340/eab.2024.16.04.08

The formation of innovative development of entrepreneurship refers to the processes and strategies that allow enterprises to gain increased competitive advantage through the creation, implementation and maintenance of new ideas, products, services and business models. The mechanism of innovative development involves the generation, implementation and maintenance of innovative ideas by entrepreneurs in the market, which allows for the systematic improvement of business processes.
Monitoring of innovative development includes a systematic approach to tracking, assessing and managing innovative processes, which ensures the continuous development of the organization's innovative capabilities. Active participation in these processes is achieved using the modern innovative models discussed in the paper. Each model focuses on specific strategies that allow organizations to adapt to a rapidly changing business environment and create sustainable value.
The methodology used in the paper includes a literature review, familiarization with international practice, monitoring and evaluation. Also, the discussion topics discussed in the paper include important issues such as: the importance of innovation, entrepreneurship challenges, technological progress and strategic directions.
Finally, the study clearly shows that the success of innovative development of entrepreneurship depends on the need for a systemic approach and strategic integration, which ensures sustainability and social responsibility.

Keywords: Innovation, innovative development of entrepreneurship, transformational innovation, economic development, employment.
JEL Codes: L26, O31, O32, Q55

Introduction

In today’s rapidly evolving economic landscape, the need for innovation for businesses has never been more critical. Transformative innovation has been defined as innovative changes that significantly alter products, services, or business models – playing a critical role in building competitive advantage and driving sustainable growth. As globalization, technological advancements, and changing consumer preferences introduce novelties to markets, entrepreneurs face both unprecedented challenges and unique opportunities to leverage innovation.
The modern entrepreneurial ecosystem is characterized by a blend of creativity, agility, and resilience. Entrepreneurs must not only generate innovative ideas, but also develop effective mechanisms to implement these ideas. This involves a comprehensive understanding of various factors, including: market dynamics, technological trends, and organizational capabilities. Moreover, the integration of digital tools and collaborative networks has revolutionized the way entrepreneurs approach innovation.
The paper explores the mechanisms of transformative innovation in entrepreneurial practice, highlighting the importance of an adaptive framework that supports continuous improvement and responsiveness to change. By analyzing key components such as idea generation, resource mobilization and market entry strategies, this study aims to provide insights into how contemporary entrepreneurs can develop an innovation culture that not only meets current demands but also anticipates future trends.

Formation of innovative development of entrepreneurship

Innovative development in entrepreneurship refers to the processes and strategies through which enterprises create, implement and sustain new ideas, products, services or business models, which increase and strengthen competitive advantage. This concept covers a wide range of activities aimed at promoting innovation and responding to market demands in a dynamic environment.
Innovative development in entrepreneurship involves the systematic search for innovations by entrepreneurs to improve their business models and effectively meet customer needs. It includes:
• Creating new ideas - generating innovative concepts that can lead to the introduction of new products or services;
• Implementing change - translating ideas into actionable strategies that bring about transformation within the organization;
• Maintaining competitive advantage - to remain relevant in the market and meet changing customer demands.
The term "innovative development of entrepreneurship" is used when research is being conducted on the mechanism of implementation of scientific and technological progress in the process of activity and the type of development and research on the mechanism of implementation of scientific and technological progress are considered. The term "innovative development" should be understood as a path of economic growth aimed at a significant improvement in all types of economic activity, primarily innovation, which is provided by scientific and technological progress (STP) and ensures GDP growth.
The reform of the market economy requires an incredibly large effort from enterprises to manage innovative development, therefore, they need support at the appropriate level due to rapidly changing conditions. The purpose of the functioning of any innovative enterprise is to satisfy social needs in certain types of products (works, services) and make a profit.
Integrated monitoring of innovative development of entrepreneurship implies a systematic approach to tracking, evaluating and managing innovation processes within enterprises. This concept implies a continuous assessment of various aspects of innovation, such as: idea generation, market response and implementation effectiveness, so that the organization can effectively develop its innovative capabilities.
Monitoring is important because it provides data-driven insights that help leaders make informed decisions about innovation strategies. Also, through increased accountability, organizations can hold teams accountable for innovation outcomes. Monitoring allows for the identification of the most effective use of resources and optimize investments in innovation. Also, organizations can quickly adapt their strategies based on reality and changing market conditions.
The directions of innovative development and monitoring of entrepreneurship are divided into four main stages (Zabashta, 2019):
First stage - monitoring of innovation activities of enterprises:
• Innovation activities of industrial enterprises according to innovation directions;
• Innovation activities of industrial enterprises according to innovation directions.
Second stage – level of costs and financing of innovative activities of enterprises:
• Distribution of total costs by innovation direction;
• Distribution of total funding for innovation activities.
Third stage – monitoring the number of enterprises that have implemented innovations:
• Dynamics of the number of industrial enterprises that have introduced innovations;
• Number of industrial enterprises that have introduced innovations by type of economic activity;
• Number of industrial enterprises that have introduced marketing and organizational innovations;
• Number of innovative products introduced in industrial enterprises.
Fourth stage – monitoring the number of industrial enterprises that have introduced innovative products:
• Number of industrial enterprises that have implemented innovative products by type of economic activity;
• Volume of innovative products sold;
• Export sales of innovative products;
• Number of enterprises that have acquired and transferred new technology (engineering achievements) within and outside the country by forms of acquisition and transfer.
The creation of a general scheme for the formation of an innovative development mechanism in entrepreneurship includes several interconnected components, which are reflected in Scheme 1:

Innovative development models of entrepreneurship

Contemporary models of entrepreneurship innovation development offer a variety of frameworks for navigating the complexities of today’s business landscape. By adopting and adapting these models, entrepreneurs can enhance their ability to innovate, respond to market changes, and create sustainable value. Each model presents unique strategies and considerations, allowing organizations to choose the approach that best suits their goals and context. Contemporary models of entrepreneurship innovation development reflect the dynamic nature of today’s business environment, embracing new technologies, collaborative approaches, and evolving customer expectations.
Consider innovative models and their main features:
• Open Innovation Model: The model emphasizes the importance of external collaboration in the innovation process. Organizations, in addition to their internal capabilities, use external ideas, technologies, and routes to market;
• Disruptive Innovation Model: Developed by Clayton Christensen, this model focuses on innovation, which creates new markets by offering simpler, more affordable solutions that ultimately displace established competitors;
• Lean Startup Model: Developed by Eric Ries, this model advocates a systematic, scientific approach to creating and managing startups. It emphasizes rapid prototyping, user feedback, and iterative design;
• Triple Helix Model: The model describes the interactions between academia, industry, and government in terms of innovation and economic development. It emphasizes the collaborative ecosystem that is necessary to foster innovation;
• Business Model Innovation (BMI): The model focuses on rethinking and shaping business models to create value. It encourages entrepreneurs to innovate not only their products, but also the ways in which they deliver value to customers;
• Digital Innovation Model: The model uses digital technologies to transform business operations, processes, and customer interactions. It is increasingly relevant in today's technology-driven Marketplace;
• Sustainable Innovation Model: The model focuses on developing products and services that address environmental and social challenges while creating economic value;
• Social Innovation Model: The model emphasizes innovative solutions that address social issues and improve the well-being of society. It combines entrepreneurship with a social mission.
The main areas of impact of innovative development models are:
• Economic growth: By supporting businesses, these models can contribute to job creation and economic development;
• Social change: Many innovative models aim to address social issues, improve living standards, and empower people through sustainable practices;
• Environmental sustainability: Models that prioritize the circular economy and sustainable practices help mitigate environmental impacts, ensuring a more sustainable future.
These models reflect a shift towards more adaptive, sustainable and socially responsible approaches to entrepreneurship, promoting a holistic view of business impact.
The creation of an innovative model of entrepreneurship development is influenced by a combination of factors, including organizational culture, market dynamics, technological advancement, and leadership vision. Scheme 2 provides several key factors:

By studying the innovative development model of entrepreneurship, it can be said that the model is divided into development and restraining factors. Development factors are given in Scheme 3:

In addition, the model contains important systems such as: innovation management system, research and development (R&D) system, collaboration and communication system, customer relationship management (CRM) system, project management system, talent management system, data analytics system, supply chain management system, innovative products and services, and sustainability and compliance system.
The main measures in the formation of an innovative model are described in Scheme

Scheme 6 shows a complex system of an innovative model of entrepreneurship, which combines the main categories of development and restraining factors. In the process of forming the model, both the environment that promotes innovations and the challenges that may prove insurmountable are important. Active use of development factors and overcoming restraining factors are the prerequisites for the success of innovative processes. It is important for organizations to create an environment that promotes change and innovation, which ultimately increases their competitiveness.

Conclusion

The value of innovative development models lies in their ability to create resilient, adaptive, and responsible businesses. They not only drive economic growth and competitive advantage, but also contribute to sustainability and social impact. By adopting these models, entrepreneurs can navigate the complexities of modern markets and make a positive contribution to society, ultimately ensuring a more sustainable and equitable future.
Economic analysis of innovative development models reveals their profound impact on market dynamics, employment, productivity, and social well-being. These models not only drive economic growth, but also promote sustainability and responsible entrepreneurship. Understanding these dynamics is essential for entrepreneurs, investors, and policymakers to help shape sustainable and adaptive economies in the face of rapid change.
Innovative development mechanisms, which include appropriate monitoring systems, play an important role in increasing the efficiency of enterprises and optimizing investments. Modern innovative models provide new strategies that allow entrepreneurs to adapt to changes and create sustainable value.
We should never forget the importance of factors that determine the success of innovative development, such as market requirements, technological advances and organizational culture. However, there are certain challenges that can hinder innovation processes.
Therefore, the process of innovative development of entrepreneurship requires a complex and integrated approach, which will contribute to achieving both economic and social sustainability. In the future, entrepreneurs and organizations must develop the readiness and ability to successfully implement innovative processes and manage existing challenges.

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