EFFECTIVE USE OF INNOVATIVE MARKETING TECHNOLOGIES IN ENTERPRISES
Enterprises can be based on new competition through innovation
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Enterprises can be based on new competition through innovation. In other words, there will be changes in the competitive trends. Perfect competition is a very strong incentive for society to minimize production costs and bring wages as close as possible to its standard productivity.And the profit obtained from the use of innovations leads to further increase of the activity of the enterprise. Y. Humpeter (1883-1950) called this profit static profit.In this case, economic efficiency is not able to bring production to a new level. The new level is associated with innovation, which requires addit...
Enterprises can be based on new competition through innovation. In other words, there will be changes in the competitive trends. Perfect competition is a very strong incentive for society to minimize production costs and bring wages as close as possible to its standard productivity.And the profit obtained from the use of innovations leads to further increase of the activity of the enterprise. Y. Humpeter (1883-1950) called this profit static profit.In this case, economic efficiency is not able to bring production to a new level. The new level is associated with innovation, which requires additional cost.Innovation creates a new type of competition. This situation happens when a new product, a new technology, in general has some kind of novelty, advantage.Innovator begins to destroy the livelihood of other enterprises. Because a competitor operating on the basis of innovation leaps ahead of others and can become a monopolist in its field. Y. Schumpeter called it "creative corruption".
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