Formation of competitive advantages of enterprises based on innovations: theory and world practice

The growing importance of innovation as a determinant of economic development is becoming increasingly evident not only in developed countries, but also in developing countries and countries with economies in transition. Consequently, the revenues of innovative companies are growing, forcing other organizations to change their business models to innovative ones. Innovation affects capitalization, and as a business grows, its impact also increases, encouraging companies to accelerate their innovation processes. The mechanism of influence of innovations on financial results is mediated by the market, where competitive advantages are formed. Despite the fact that in a knowledge economy the ability of an organization to learn becomes an extremely important factor, it can be assumed that it is the innovation that determines the competitive advantage and market success.