Evaluating the Relationship between Investment in Innovation and the Volume of Sold Innovative Products in the Industry of Ukraine

Keywords: innovations, costs of innovation activity, structure of innovation costs, industry, innovative products, level of competitiveness


Applying the correlation and regression analysis, the study of the relationship between the volume and structure of innovation costs and the volume of sold innovative products (SIP) in industry was carried out on the example of Ukraine. The time lag of the costs-of-sales impact was also considered. It was hypothesized that the total volume of sold innovative products and their structure (the share of new products for the market, the share of products sold abroad) depend on different types of investment in innovation. The correlation and regression analysis showed that the components of investment in innovation influenced differently the volume and structure of SIP, which confirmed the hypothesis. The total amount of SIP largely depends on the level of costs to purchase machinery, equipment and software, as well as costs related to the component "Other". Positive dynamics of sold innovative products that are new to the market, as well as the products sold abroad, is largely determined by the volume of expenditures on external scientific research. Thus, by influencing the structure of investment in innovation, a company can significantly increase the level of its competitiveness.   


Download data is not yet available.


Alymov, O. M. et al. (2014). Pershyy etap modernizatsiyi ekonomiky Ukrayiny: dosvid ta problemy The [First Stage of Modernization of the Ukrainian Economy: Experience and Problems]. Zaporizhia: Classical Private University. [in Ukrainian].

Amosha, O. et al. (2019). Industriya 4.0: napryamky zaluchennya investytsiy z urakhuvannyam interesiv vitchyznyanykh vyrobnykiv [Industry 4.0: The Directions for Attracting Investment from the Perspective of the Interests of Domestic Producers]. Economic Herald of the Donbass, 3(57), 189-216. https://doi.org/10.12958/1817-3772-2019-3(57)-189-216

Amosha, O. I. et al. (2018). Modernizatsiya ekonomiky promyslovykh rehioniv Ukrayiny v umovakh detsentralizatsiyi upravlinnya [Economic Modernization of Industrial Regions of Ukraine in a Decentralized Environment]. Kyiv: Institute of Industrial Economics of the National Academy of Sciences of Ukraine. [in Ukrainian].

Boiko, V., Kwilinski, A., Misiuk, M., & Boiko, L. (2019). Competitive Advantages of Wholesale Markets of Agricultural Products as a Type of Entrepreneurial Activity: The Experience of Ukraine and Poland. Economic Annals-XXI, 175(1-2), 68-72. https://doi.org/10.21003/ea.V175-12

Carvalho, L., & Avellar, A.P. (2016). Innovation and Productivity: Empirical Evidence for Brazilian Industrial Enterprises. Revista de Administração, 52(2), 1-15. https://doi.org/10.1016/j.rausp.2016.12.009

Ciocanel, A. B., & Pavelescu, F. M. (2015). Innovation and Competitiveness in European Context. Procedia Economics and Finance, 32, 728-737. https://doi.org/10.1016/S2212-5671(15)01455-0

Czyżewski, B., Matuszczak, A., & Miśkiewicz, R. (2019). Public goods versus the farm price-cost squeeze: shaping the sustainability of the EU’s common agricultural policy. Technological and Economic Development of Economy, 25(1), 82-102. https://doi.org/10.3846/tede.2019.7449

Dementyev, V.V., & Kwilinski, A. (2020). Institutsionalnaya sostavlyayuschaya izderzhek proizvodstva [Institutional Component of Production Costs]. Journal of Institutional Studies, 12(1), 100-116. https://doi.org/10.17835/2076-6297.2020.12.1.100-116

Dzwigol, H. (2020a). Innovation in Marketing Research: Quantitative and Qualitative Analysis. Marketing and Management of Innovations, 1, 128-135. http://doi.org/10.21272/mmi.2020.1-10

Dzwigol, H. (2020b). Methodological and Empirical Platform of Triangulation in Strategic Management. Academy of Strategic Management Journal, 19(4), 1-8.

Dzwigol, H., Dzwigol-Barosz, M., Miskiewicz, R., & Kwilinski, A. (2020a). Manager Competency Assessment Model in the Conditions of Industry 4.0. Entrepreneurship and Sustainability Issues, 7(4), 2630-2644. https://doi.org/10.9770/jesi.2020.7.4(5)

Dzwigol, H., Dzwigol–Barosz, M., & Kwilinski, A. (2020b). Formation of Global Competitive Enterprise Environment Based on Industry 4.0 Concept. International Journal of Entrepreneurship, 24(1), 1-5.

Dźwigoł, H., & Wolniak, R. (2018). Controlling w procesie zarządzania chemicznym przedsiębiorstwem produkcyjnym [Controlling in the management process of a chemical industry production company]. Przemysl Chemiczny, 97(7), 1114—1116. https://doi.org/10.15199/62.2018.7.15

Dzwigoł, H., Dzwigoł–Barosz, M., Zhyvko, Z., Miskiewicz, R., & Pushak, H. (2019a). Evaluation of the Energy Security as a Component of National Security of the Country. Journal of Security and Sustainability Issues, 8(3), 307-317. http://doi.org/10.9770/jssi.2019.8.3(2)

Dzwigol, H., Aleinikova, O., Umanska, Y., Shmygol, N., & Pushak, Y. (2019b). An Entrepreneurship Model for Assessing the Investment Attractiveness of Regions. Journal of Entrepreneurship Education, 22, (SI1), 1-7.

Dźwigoł, H., Shcherbak, S., Semikina, M., Vinichenko, O., & Vasiuta, V. (2019c). Formation of Strategic Change Management System at an Enterprise. Academy of Strategic Management Journal, 18(SI1), 1-8.

Furmaniak, S., Gauden, P.A., Patrykiejew, A., Miśkiewicz, R., & Kowalczyk, P. (2018). Carbon Nanohorns as Reaction Nanochambers – a Systematic Monte Carlo Study. Scientific Reports, 15407. https://doi.org/10.1038/s41598-018-33725-z

Furmaniak, S., Gauden, P.A., Patrykiejew, A., Miśkiewicz, R., & Kowalczyk, P. (2019a). The effects of confinement in pores built of folded graphene sheets on the equilibrium of nitrogen monoxide dimerization reaction. Journal of Physics Condensed Matter, 31(13), 135001, 1-12. https://doi.org/10.1088/1361-648X/aaffb3

Furmaniak, S., Gauden, P.A., Patrykiejew, A., Szymański, G., Miśkiewicz, R., & Kowalczyk, P. (2019b). In silico study on the effects of carbonyl groups on chemical equilibrium of reactions with a polar product occurring under confinement in pores of activated carbons. Chemical Engineering Communications, 1-12. https://doi.org/10.1080/00986445.2019.1700115

Golovatyuk, V. M., Pidorycheva, I. Yu., & Soloviov, V. P. (2018). Stratehichni ryzyky naukoyemnoho rozvytku natsional'noyi ekonomiky [Strategic Risks for Knowledge-Based Evolution of the National Economy]. Science and Science of Science, 3(101),3-23. https://doi.org/10.15407/sofs2018.03.003 [in Ukrainian].

Haltiwanger, J., Jarmin, R., & Schank, T. (2003). Productivity Investment in ICT and Market Experimentation: Micro Evidence from Germany and the United States. Washington, DC: Center for Economic Studies Working Paper CES-03-06, US Bureau of the Census.

Jamel, L. et al. (2020). The Nexus between Education and Economic Growth: Analyzing Empirically a Case of Middle-Income Countries. Virtual Economics,3(2), 43-60. https://doi.org/10.34021/ve.2020.03.02(3)

Kuzior, A., Kwilinski, A., & Tkachenko, V. (2019). Sustainable Development of Organizations Based on the Combinatorial Model of Artificial Intelligence. Entrepreneurship and Sustainability, 7(2), 1353-1376. http://doi.org/10.9770/jesi.2019.7.2(39)

Kuzior, A., & Kuzior, P. (2020). The Quadruple Helix Model as a Smart City Design Principle. Virtual Economics, 3(1), 39-57. https://doi.org/10.34021/ve.2020.03.01(2)

Кwilinski, A. (2019). Implementation of Blockchain Technology in Accounting Sphere. Academy of Accounting and Financial Studies Journal, 23(SI2), 1528-2635-23-SI-2-412: 1-6.

Kwilinski, A., Tkachenko, V., & Kuzior, A. (2019a). Transparent Cognitive Technologies to Ensure Sustainable Society Development. Journal of Security and Sustainability Issues, 9(2), 561-570 http://doi.org/10.9770/jssi.2019.9.2(15)

Kwilinski, A., Dalevska, N., Kravchenko, S., Hroznyi, I., & Kovalenko, I. (2019b). Formation of the Entrepreneurship Model of E-Business in the Context of the Introduction of Information and Communication Technologies. Journal of Entrepreneurship Education, 22(SI1), 1528-2651-22-S1-337: 1-7.

Kwilinski, A., Ruzhytskyi, I., Patlachuk, V., Patlachuk, O., & Kaminska, B. (2019c). Environmental Taxes as a Condition of Business Responsibility in the Conditions of Sustainable Development. Journal of Legal, Ethical and Regulatory Issues, 22(SI2) 1544-0044-22-SI-2-354: 1-6.

Kwilinski, A., Volynets, R., Berdnik, I., Holovko, M., & Berzin, P. (2019d). E-Commerce: Concept and Legal Regulation in Modern Economic Conditions. Journal of Legal, Ethical and Regulatory Issues, 22(SI2), 1544-0044-22-SI-2-357: 1-6.

Kwilinski, A., Zaloznova, Y., Trushkina, N., & Rynkevych, N. (2020a). Organizational and Methodological Support for Ukrainian Coal Enterprises Marketing Activity Improvement. E3S Web of Conferences, 168, 00031. https://doi.org/10.1051/e3sconf/202016800031

Kwilinski, A., & Kuzior, A. (2020). Cognitive Technologies in the Management and Formation of Directions of the Priority Development of Industrial Enterprises. Management Systems in Production Engineering, 28(2), 133-138. https://doi.org/10.2478/mspe-2020-0020

Kwilinski, A., Slatvitskaya, I., Dugar, T., Khodakivska, L., & Derevyanko, B. (2020b). Main Effects of Mergers and Acquisitions in International Enterprise Activities. International Journal of Entrepreneurship, 24(Special Issue: Entrepreneurship, Innovation Management and Sustainability), 1-8.

Kwilinski, A., Dzwigol, H., & Dementyev, V. (2020c). Model of Entrepreneurship Financial Activity of the Transnational Company Based on Intellectual Technology. International Journal of Entrepreneurship, 24(Special Issue: Entrepreneurship, Innovation Management and Sustainability), 1-5.

Kwilinski, A., Litvin, V., Kamchatova, E., Polusmiak, J., & Mironova, D. (2020d). Information Support of the Entrepreneurship Model Complex with the Application of Cloud Technologies. Journal of Entrepreneurship Education, 23(SI1), 1-9.

Kwilinski, A., Vyshnevskyi, O., & Dzwigol, H. (2020e). Digitalization of the EU Economies and People at Risk of Poverty or Social Exclusion. Journal of Risk and Financial Management, 13(7), 142. https://doi.org/10.3390/jrfm13070142

Miśkiewicz, R. (2018). The Importance of Knowledge Transfer on the Energy Market. Polityka Energetyczna, 21(2), 49-62. http://dx.doi.org/10.24425%2F122774

Miśkiewicz, R, & Wolniak, R. (2020). Practical Application of the Industry 4.0 Concept in a Steel Company. Sustainability, 12(14), 5776. https://doi.org/10.3390/su12145776

Morris, D. M. (2018). Innovation and Productivity among Heterogeneous Firms. Research Policy, 47(10),1918-1932. https://doi.org/10.1016/j.respol.2018.07.003

Pająk, K., Kamińska, B., & Kvilinskyi, O. (2016). Modern Trends of Financial Sector Development under the Virtual Regionalization Conditions. Financial and Credit Activity: Problems of Theory and Practice, 2(21), 204-217. https://doi.org/10.18371/fcaptp.v2i21.91052

Pająk, K., Kvilinskyi, O., Fasiecka, O., & Miśkiewicz, R. (2017). Energy Security in Regional Policy in Wielkopolska Region of Poland. Economics and Environment, 2(61), 122-138. Retrieved from https://www.ekonomiaisrodowisko.pl/uploads/eis%2061/11_pajak.pdf

Ramadani, V. et al. (2019). Product Innovation and Firm Performance in Transition Economies: A Multi-Stage Estimation Approach. Technological Forecasting and Social Change, 140, 271-280. https://doi.org/10.1016/j.techfore.2018.12.010

Savchenko, T., Basiurkina, N., Rodina, O., & Kwilinski, A. (2019). Improvement of the assessment methods of product competitiveness of the specialized poultry enterprises. Management Theory and Studies for Rural Business and Infrastructure Development, 41(1), 43-61. https://doi.org/10.15544/mts.2019.05

Soldak, M. O., & Shamileva, L. L. (2018). Factors of the Industrial Regions’ Development: Opportunities for Modernization on an Innovative Basis. Economy of industry, 1(81), 21-43. https://doi.org/10.15407/econindustry2018.01.021

State Statistics Service of Ukraine. (2018). Scientific and Innovatory Work in Ukraine. Kyiv: State Statistics Service of Ukraine.. Retrieved from http://www.ukrstat.gov.ua/druk/publicat/kat_u/ 2018/zb/09/zb_nauka_2017.pdf [in Ukrainian].

Tkachenko, V., Kwilinski, A., Klymchuk, M., & Tkachenko, I. (2019a). The Economic-Mathematical Development of Buildings Construction Model Optimization on the Basis of Digital Economy. Management Systems in Production Engineering, 27(2), 119-123. http://doi.org/10.1515/mspe-2019-0020

Tkachenko, V., Kwilinski, A., Korystin, O., Svyrydiuk, N., & Tkachenko, I. (2019b). Assessment of Information Technologies Influence on Financial Security of Economy. Journal of Security and Sustainability, 8(3), 375-385. http://doi.org/10.9770/jssi.2019.8.3(7)

Tkachenko, V., Kuzior, A., & Kwilinski, A. (2019c). Introduction of Artificial Intelligence Tools into the Training Methods of Entrepreneurship Activities. Journal of Entrepreneurship Education, 22(6), 1-10.

Tkachenko, V., Kwilinski, A., Tkachenko, I., & Puzyrova, P. (2019d). Theoretical and Methodical Approaches to the Definition of Marketing Risks Management Concept at Industrial Enterprises. Marketing and Management of Innovations, 2, 228-238. http://doi.org/10.21272/mmi.2019.2-20

Abstract views: 134
PDF Downloads: 101
How to Cite
Kovchuha, L. (2020). Evaluating the Relationship between Investment in Innovation and the Volume of Sold Innovative Products in the Industry of Ukraine. Virtual Economics, 3(3), 67-79. https://doi.org/10.34021/ve.2020.03.03(4)