IDENTIFYING THE FACTORS INFLUENCING THE EFFECTIVENESS OF INNOVATION ACTIVITY AND EVALUATING ECONOMIC EFFICIENCY INDICATORS IN ITS MANAGEMENT

This paper systematizes the internal, external, and institutional factors that determine the effectiveness of innovation activity at the enterprise level and examines the principal economic efficiency indicators applied in managing that activity. Based on a review of the innovation-management literature and practice in capital-intensive, resource-based industries, the study groups influencing factors into three levels - firm-level, market-level, and institutional-level - and evaluates the comparative analytical value of Net Present Value, Return on Investment, the Profitability Index, Residual Earnings, and the innovation intensity ratio as management tools. The paper argues that no single indicator is sufficient on its own and proposes that factor identification and multi-indicator efficiency evaluation should be combined within a unified management framework in order to support evidence-based innovation decision-making.