Cyclicality of innovative development in entrepreneurship

Research of innovative processes development is one of the most important and popular areas in modern economics. According to neoclassical economics, the innovative development cyclicality, which is manifested in the periodic change of economic ups and downs, is the basis to explain the dynamics in many processes in the modern world economy. Scientific and practical research problem is the multiplicity and often the contradictory explanation of cyclical nature in innovative development. The purpose of the research is to analyze the innovative development cyclicality in entrepreneurship, its identification. The main hypothesis of the research is the thesis that the cyclicality presence is related to technological development of production and also to innovation life cycle. To confirm the point of view, the authors define the connection between the innovation process and the production process by means of technological cycles that can be graphically represented as S-shaped curves and the corresponding curves of average cost. The connection between the innovative development cyclicality and the innovation life cycle is clearly reflected in the dynamics of entrepreneur's efficiency (profitability) at each stage in the innovation life cycle.