The impact of innovation development risks on the competitiveness of enterprises

Abstract

The article examines the impact of innovation development risks on the competitiveness of enterprises under conditions of increasing uncertainty and dynamic changes in the external environment. It is substantiated that innovation development acts as a key factor in the formation of competitive advantages; however, it is simultaneously accompanied by a high level of risks that significantly affect the outcomes of innovative activities and the competitive positions of enterprises. Emphasis is placed on the fact that, in modern conditions, innovation risks should not be considered exclusively as a negative factor, since they represent an inherent element of innovation processes and may be transformed both into competitive losses and sources of competitive opportunities. Within the framework of the study, theoretical approaches to the interpretation of innovation development risks are generalized, and their specific features are identified in comparison with traditional economic and operational risks. A classification of innovation development risks through the prism of their impact on enterprise competitiveness is proposed. This classification systematizes technological, financial, organizational and managerial, market, and institutional risks depending on the nature of their transformation into competitive advantages or disadvantages. Such an approach provides a holistic understanding of the role of risks in shaping the competitive dynamics of innovative enterprises. The article reveals a conceptual mechanism of the influence of innovation development risks on enterprise competitiveness, which covers the stages of formation of innovative decisions, their implementation, and commercialization. It is shown that the effects of innovation risk realization depend on the level of innovative capacity of the enterprise, organizational flexibility, managerial competencies, and the ability to adapt to changes in the market environment. A risk-oriented approach to ensuring the competitiveness of innovative enterprises is proposed, which involves the integration of risk management into the system of strategic management of innovation development. It is substantiated that the application of this approach allows enterprises to shift from reactive responses to innovation risks toward proactive formation of competitive opportunities. This contributes to improving the effectiveness of innovative activities and strengthening long-term competitive sustainability. The results of the study can be used in the development of innovation strategies of enterprises and in improving innovation risk management systems under conditions of economic instability.