FACTORS OF INNOVATIVE DEVELOPMENT OF ENTERPRISES IN THE SERVICE SECTOR

Abstract

The paper provides insights into the current state and major business trends in the service industries sector, along with interpreting the concepts of "a service" and "service industry". The definition of "innovative development of enterprises in the service sector" has been amended, viewed as a systemic process of innovation implementation by applying new methods and updated realms of the enterprise potential realization through the novel technological advancements and tools to enhance the enterprise competitiveness in a rapidly changing external environment. An emphasis is made that modern Ukrainian service industries market demonstrates positive development trends. It is argued that the characteristic features of the domestic service sector are further growth of high-tech services, the availability of unused capacity, investment attractiveness of domestic businesses to foreign capital, the focus towards innovative forms of work arrangements within service industries. The findings revealed the factors that contribute to the processes of evolution of the services sector which are the integrated use of knowledge and methods to implement the innovations to meet the customers’ needs; the introduction of innovative development strategies consistent with terms and conditions for each particular enterprise; the use of investment resources; the availability of government support; the creation of a competitive environment; attracting highly qualified professionals.