Management of International Trade in the Context of Ensuring Innovative Development

Abstract

The activities of companies in the foreign market that offer their products and services face several unique challenges, domestic and international, global competition, and additional requirements at several levels. Therefore, developing best practices and considering the evolution of trading processes, strategies, regulations, and technological innovations are mandatory for continuity and prosperity in the international market. The article carries out a bibliometric analysis of publications by keywords «international trade» and «innovations» in the system of international commodity-monetary relations in the conditions of innovative processes and prospects of international exchange of scientific and technical knowledge and technologies. The article aims to investigate the functional link between international trade and the level of the country’s innovative development and confirm the hypothesis about the significance of this link. The following methodological tools were used in the article: Canonical Correlation Analysis and Multivariate Panel Data Regression Model. Forty-four European and Asian countries are investigated. The period of the investigation is from 2006 to 2021. The array of input variables includes a set of indicators, six of which characterize the innovative development of the studied countries; five indicators represent international trade; and three indicators control and describe the socio-economic development of nations. The revealed correlation-regression dependences generally provide a basis for confirming the hypothesis of a direct relationship between the country’s innovative development level and its positioning in the field of international trade. The obtained results proved the presence of a direct statistically significant relationship between High technology exports, Import and Current account balance; Innovation index and External balance on goods and services. An inverse functional dependence was found between the indicator Patent applications by residents and the Current account balance. In the future, it is necessary to adapt the proposed methodology to develop a functional basis for the analysis of the impact of innovations on the ecosystem of specific enterprises; to consider the national aspects of conducting business, and the state policy implication of supporting the digitization of crucial stages of production.