FUNDAMENTALS OF THE RELATIONSHIP BETWEEN INTELLECTUAL CAPITAL AND INNOVATION

Abstract

Current trends in market globalization, ever-changing economic environments create challenges for companies to increase their competitive advantages through internally generated intangible assets, in order to gain advantages in competitive market conditions, the study of intellectual capital and innovation as competitive differentiating factors becomes relevant. Taking into account the latter, the study of the concepts of intellectual capital and innovation and the identification of their interactions becomes relevant. In relation to the above, this article discusses the components of intellectual capital that promote innovation. The purpose of the article is to present the collaborative foundations and effects of innovation and intellectual capital. The article examines the concept of intellectual capital and its component elements, considers the localization of their sub-components in the context of innovations. In this article, the nature of dynamic developments and trends in the management of intellectual capital and implementation of innovations has been revealed, based on the inevitable necessity of economic developments. It is becoming clear that intellectual capital and innovation have a symbiotic relationship, each influencing the other. Intellectual capital refers to a company's intangible assets, including knowledge, experience, skills, patents, trademarks, and organizational processes. Innovation, on the other hand, involves the creation and implementation of new ideas, goods, processes or services that bring about positive change.In the framework of the research work, an analysis of theoretical material was performed, such research methods as content analysis of documents, analysis method were used. Conducted studies allow us to draw conclusions, the positive organization of intellectual capital and innovation interactions is an important necessity, which at the same time gives a competitive advantage.