DEVELOPMENT OF THE THEORY OF COMPETITIVENESS IN THE CONTEXT OF GLOBALIZATION

The main goal of the study is to analyze the transformation of the theoretical and practical foundations of competitiveness in the context of globalization of the world economy, as well as to determine modern factors that influence the competitiveness of national economies. As part of the stated goal, the research tasks consisted in analyzing the evolution of theoretical approaches to the definition and assessment of competitiveness, taking into account current globalization processes; identifying the economic and social significance of new determinants of competitiveness, including innovation potential, the quality of human capital, institutional development, and a focus on sustainability; as well as studying the impact of integration into global value chains and the dynamics of innovation activity on countries’ ranking positions and assessing current trends in innovation financing in terms of their contribution to ensuring long-term competitiveness. The study employed a combination of theoretical and empirical methods of analysis. The theoretical framework includes the works of both classical and modern scholars in the field of competitiveness, among them M. Porter, D. North, R. Lucas, P. Romer, G. Gereffi, T. Sturgeon, and others. In the empirical part of the study, data from leading international indices, particularly the Global Innovation Index (GII) 2023, as well as statistical information on the dynamics of R&D expenditures, venture capital investments, and innovation activity in various countries, were analyzed. The analysis showed that modern determinants of competitiveness differ significantly from the classic view that prioritized resources and costs: intangible assets, technological development, innovative activity, institutional effectiveness, and the quality of human capital are becoming the key factors. The study demonstrated that despite ongoing uncertainty in startup financing and a decline in global venture capital investment, the overall level of innovation activity remains high. Moreover, in several regions (such as Sub-Saharan Africa and Southeast Asia), the pace of development exceeds expectations relative to the economic potential of these countries.