The impact of innovation on employment and earnings in Ukrainian industry
The impact of innovation on employment and earnings in Ukrainian industry

Summary/Abstract: The innovative activity of industrial enterprises is one of the essential prerequisites for national socio-economic development. Innovations contribute to the growth of labour productivity, added value and profit, and, as a result, to an increase in earnings. Accordingly, the study of patterns of the impact of product innovation (expressed as an indicator of the share of innovative products in the volume of industrial products sold) on employment and earnings in the industrial sector of the economy has significant scientific and applied importance. In the article, using the example of Ukraine, a strong direct relationship between the innovativeness of products and industry share in employment is empirically proven (using correlation-regression methods). Using Almon’s method, a distribution-lag model (with a lag of three years) has been created, which reflects the high direct dependence of the average monthly earnings of a full-time employee in the Ukrainian industry on growth in product innovation. A deterministic economic-mathematical model of optimising the technological structure of existing industrial and innovative products in the manufacturing industry has been developed according to the criterion of increasing innovativeness. The modelling results give a scientific basis for strategic planning, as they allow the choice of such a target optimisation (level of product innovation) at which earnings in the manufacturing industry will reach the desired value.Keywords: earnings; employment; industry; innovative pr

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