Innovation as a driver for conflict and harmony of social and economic interests

Abstract

Based on the analysis of innovation activity of domestic enterprises the complex of factors that restrain economic growth and provoke social discords in Ukraine has been revealed. The traditional coordination structures cannot ensure an efficient response, especially in the sphere of innovation activity. To resist these negative factors a necessity for the enterprise management system to contain a special subsystem responsible for economic safety management has been grounded. The development and scientific justification of the structure, components, goals and procedures of such a subsystem rests upon the insight into the nature of links between economic safety and innovations. To follow the conclusions of Simon Kuznets that innovations may have positive or negative unexpected results, the research has proved that the condition of business of absolute safety excludes active innovations, as a controllable system having reached the balance of expectations of all stakeholders has no stimuli to change and, moreover, it aims to avoid innovations, as any change destroys the achieved balance of material, financial and labour flows. An insight has been gained into the nature of socioeconomic interests of major actors in the external surroundings of a company, such as national and regional authorities and local self-governmental bodies, competitors, consumers and suppliers. The essence of conflicts and factors that provoke conflicts in the process of implementation of innovations has been revealed. Managerial approaches have been proposed to the harmonization of the interests of business, its internal and external stakeholders by means of permanent innovation activity.