The knowledge increment strategy as a factor for increasing the competitiveness of industrial enterprises
Importance The article provides an empirical analysis of how knowledge generation processes influence results of entities’ performance. We developed the classification of knowledge increment strategies. The classification allows systematizing entities’ processes of generating knowledge in accordance with the master plan of development and general competitive strategy. We found the correlation between the composition of costs for various knowledge and quality of new products, profit increment driven by new knowledge, investment. Objectives The objective of the research is to develop a theory and practice of strategic planning of new knowledge increment as entities’ competitiveness resource. The research strives to prove that the optimal structure of costs for various kinds of knowledge plays the leading role in effective and innovative development of the Russian businesses. Methods The methodological framework of the research relies upon the algorithm for evaluating Knowledge Index proposed by the World Bank and innovative development ratings of the Russian regions as prepared by the Russian higher educational institutions. Results We proposed the knowledge increment strategy typology. It allows enhancing, systematizing and optimizing business entities’ processes of knowledge generation. The research describes the correlation between the quantity of new products and the structure of costs for various types of knowledge. We explain how profit increment driven by new knowledge correlates with the structure of costs for new knowledge. Conclusions and Relevance We propose knowledge increment strategies that provide for the optimal structure of costs for various knowledge and increase business competitiveness as much as possible. The research expands the methodology for analyzing knowledge generating activities and provides recommendations on knowledge increment strategies as factors for higher competitiveness and innovation projects financing mechanisms.