Subject. The article discusses innovation activity in the context of continuous changes in the external and internal environment, the needs of society. Objectives. The purpose is to identify factors that affect innovation activity and are decisive for increasing competitiveness, achieving a higher level of development by countries. Methods. The study employs methods of scientific generalization, economic, logical, and comparative analysis. Results. We analyzed the term "innovations", systematized factors of external and internal environment of the enterprise, which is the main link in the innovation process. The paper established that Russia is inferior to many developed countries in terms of the innovation activity index, and noted that without innovative activities it is impossible to close down the technological gap in conditions of isolation. Conclusions. To boost innovation activity, there should be special tools and measures based on direct and indirect support from the State. It is necessary to develop an effective mechanism for the transfer of knowledge and technology, to establish relationships between the key subjects of innovation activity.
Keywords: innovativeness, competitiveness, innovative development, human capital
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