INNOVATION: ACTIVITY AND RESULT, THE ASSOCIATION WITH THE SERVICE; INNOVATION AS THE MAIN FACTOR IMPROVING EFFICIENCY

Shown are different views on the concept of «innovation» of domestic and foreign scientists who define it as a result and as a process. The analogy of innovation and service is indicated. Attention is focused on creativity – the starting point of innovation. The functions of innovation are highlighted. The features of evaluating the effectiveness of innovations in material production and services are shown. The article considers innovation activity as a way to ensure the economic efficiency of firms and increase the competitiveness of their products and services. The authors reveal the relationship between the factors of innovation and ensuring the economic efficiency of firms, and also analyze the need to develop innovation management systems. It is emphasized that the most complete synergistic effect from innovation can be obtained only through the development of an innovative management system in firms