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Vol. 3, No. 5, 2017

Corresponding author:
1 Department of Operative and Searching Activity, National Academy of Internal Affairs of Ukraine.
2 Department of Criminal Procedure, National Academy of Internal Affairs of Ukraine.
3 Department of Administrative Law and Procedure, Kharkiv National University of Internal Affairs.

DOI: http://dx.doi.org/10.30525/2256-0742/2017-3-5-469-473

FORMATION OF COMPETITIVE ADVANTAGES OF ENTERPRISES 
IN TERMS OF GLOBALIZATION: COMPETITIVE DYNAMICS  

AND AN INTELLECTUAL COMPONENT
Oleg Tarasenko1, Yurii Yermakov2

National Academy of Internal Affairs of Ukraine, Ukraine

Vitalii Pchelin3
Kharkiv National University of Internal Affairs, Ukraine

Abstract. The purpose of the article is to investigate the current state of scientific thought in relation to the 
formation of intellectual capital of an enterprise in the innovation process, achievement by the enterprise of 
corresponding competitive advantages and their protection. Methodology. The methodological basis of the 
article is the systematic approach, which provided a comprehensive definition of the scope of this research  – 
intellectual property and its protection as a complex economic and legal category. This made it possible to 
systematically define the purpose, level of abstraction, hierarchy, forms of manifestation, and key attributes of 
the subject of research. Application of principles of modelling of business processes also allowed studying the 
influence of factors of the external environment on the sequence of information flows in the process of forming 
competitive advantages on the basis of intellectual property. In addition, having determined the scientific basis, 
the collective and local monographic studies of leading scientists concerning the specificity of the formation 
of competitive advantages of innovative enterprises, including on the basis of intellectual capital, were also 
taken into account. Results. The article studies, describes and, correspondingly, formalizes modern processes 
of formation of competitive advantages in the conditions of Smart Economy: knowledge management, their 
patenting, modern significance, and the influence of patenting on the role of intellectual property in the 
investigated phenomena, as well as management of relevant information flows. Practical implications. The 
research demonstrates ways of forming competitive advantages in the modern economy, and the results of the 
analysis of relevant statistics explain patterns of economic and legal processes in the field of relevant practical 
activities. This allows assessing the actual state of the subject of the research, determining the development 
trajectory, and effectively forming methods and tools for managing the relevant processes. Value/originality. 
The proposed approach allows ensuring the principle of unity in the research of economic and legal processes 
in the field of innovation activity management. The work simultaneously synthesizes important aspects of 
information flow management, intellectual capital formation, and intellectual property protection in the process 
of commercialization of results of innovation activities.

Key words: globalization, intellectual economy, competitive advantage, competitiveness, intellectual property, 
patent.

JEL Classification: K22, D29, F23

1. Introduction
The process of globalization of the world economy 

is characterized by rapid qualitative and quantitative 
changes; modern economic relations are regulated 
by a large number of economic and legal regulators, 
and especially in this progressive part as an innovative 
direction. The activity in the innovation sphere provides 

the enterprise with the most influential and stable 
competitive advantages. Therefore, from the scientific 
point of view, the study of regularities and peculiarities 
of the processes of formation of intellectual capital 
of an enterprise in the innovation process as a basis 
for the formation of the competitiveness of a modern 
enterprise is important today.



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2. Formation of modern competitive 
advantages of enterprises in terms  
of globalization

The globalization of the economy ensures cooperation 
in the production of fundamentally new products, 
creativity and use of the latest technologies due to access 
to new external ideas while respecting the protection of 
intellectual property (IP). As V.F. Maksimova correctly 
notes, the accompanying process of globalization of 
the economy today is the formation of a new stage 
in the development of economic relations  – Smart 
(intellectual) economy. The need for the transition to 
Smart economy is caused by the underlying causes that 
determined the vector of the transformation of all spheres 
of society by increasing the efficiency of economic 
resources through innovation, intellectualization, 
institutionalization, environmentalization, and 
socialization (Maksimova, 2011).

It should be noted that the positivity of these 
tendencies not abolishes but, on the contrary, increases 
the intensity of economic competition since as 
S.V.  Kondratjukov and S.S. Staurskij correctly specify, 
reasons for the emergence of competition objectively 
laid down by the living nature, dictated by the condition 
of survival, when coming-into-being as a result of 
bioevolution of two or more organisms of the same type 
with the general goals of existence and a single habitat 
immediately required competition for limited resources 
(Kondratjukov, 2015).

Taking into account such properties of the modern 
development of globalization of economic processes, 
in our opinion, the successful definition of the essence 
of competitiveness is proposed by M.V. Bondarenko 
and L.O. Ihnatenko, they understand competitiveness 
as a property of an object having a certain share of the 
corresponding relevant market, which characterizes 
the degree of conformity of the technical-functional, 
economic, organizational, and other characteristics 
of the object with the requirements of consumers, 
determines the market share belonging to this object, 
and prevents redistribution of this market in favour of 
other objects (Bondarenko, 2007).

Yu.O. Zaitsev, having comprehensively explored the 
versatile contemporary scientific views on the essence 

and characteristics of competitiveness and evaluating 
it as an element of the system of economic competitive 
relations, identified the following properties of 
competitive advantage:
1) competitive advantage is an element in the system of 
competitive relations;
2) competitive advantage manifests itself in conditions 
of competition;
3) competitive advantage is relative;
4) competitive advantage has a dynamic nature, and 
a steady competitive advantage  – a long-term benefit 
from the application of some unique, based on a unique 
combination of intra-firm resources and the state of 
the environment, which, due to uniqueness, cannot be 
copied (Zaitsev, 2015).

It should be specified that the most stable competitive 
advantage in the Smart economy is provided by the 
intellectual component, including IP.

Several IP roles that it can perform in the process 
of forming competitive advantages are proposed by 
A.M. Prohorov: in the first place, it affects the formation 
of the resource potential of the enterprise (is a part of 
the organization’s material, commercial, informational, 
and financial potential); is a kind of “foundation” of 
the innovative potential of the organization, which 
composition and structure determine its innovative 
capabilities, and hence directions of development of the 
competitive potential of the organization as a whole; it 
is also an economic tool that ensures the transformation 
of existing competitive capabilities of the organization 
into the corresponding competitive advantages, 
besides, it remains the source of additional competitive 
advantages of the organization (Prohorov, 2013).

At the same time, it should be noted that even being 
involved with globalization, institutionalized national 
differences in knowledge management remain in 
the economies of different leading countries. Thus, 
the intellectualization of the innovative potential of 
a modern economic organization can take place in 
various ways, including under the influence of features 
of the national peculiarity of enterprise management, an 
example of which is given in Table 1 (Belova, 2016).

However, through the prism of formation of 
competitive advantages and their protection, 

Table 1
Comparison of knowledge management approaches

Direction The main ideas The result of the activity

American approach
Use of shared knowledge of employees, rather than 
individual aspects.

Organization of communities, in which people share 
information and knowledge that exist both in physical 
and virtual space.

Japanese approach
Socialization. Change in the organizational 
environment. Search for alternative approaches to 
solving problems.

The company creates new knowledge and information 
necessary for a new approach to the problem and its 
solution.

Scandinavian (European) 
approach

Intellectual capital is the result of independent actions 
of individuals.

Promotion of new ideas within the company due to 
independent opinions of individual employees.

Source: (Belova, 2016)



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the simultaneous internationalization and 
institutionalization of economic and legal processes, 
including the protection of intellectual rights both at 
the stage of patenting and the control of the protection 
of rights in the process of exchange, are the important 
advantage of globalization.

3. Protection of intellectual property  
in the innovation process

Recently, great importance in increasing the 
competitiveness of goods, as noted by O.V. Kirillov, is 
assigned to brand names, service marks, and trademarks. 
The competitiveness of commodity producers is largely 
manifested through the competitiveness of their 
products, which, in turn, is influenced by:
– availability of patent or non-patent protection;
– patent cleanliness of the equipment object;
– the name of the place of origin of goods, service 
marks and registered trademarks;
– applied technology;
– a number of patents, licenses available in the 
organization.

A significant factor affecting the competitiveness of 
the product is its patent clearance. At the same time, 
patent clearance is understood as the legal property 
of an object, the essence of which is that it does not 
violate the exclusive rights of IP (including industrial) 
in the given country, owned by third parties, and can be 
freely implemented in this country (Kirillov, 2014). But 
over time, patent clearance may also appear in relation 
to other countries since other patents may expire in 
connection with, for example, expiry, etc.

In this perspective, it is advisable to pay attention to 
the point of view of the S.P. Rogozhin and S.L. Sazanova, 
who noted that in the era of globalization of the 
economy, the active influence and interaction of legal 
and economic theories on the institute of IP, there is 
a need for its study as an economic and legal category, 
and the concept of “intellectual property right” should 
be considered as an institutionalization process for the 
protection of competitive advantages of the enterprise, 
which creates incentives and rules of economic 
behaviour (Rogozhin, 2016).

Investigating the protection of IP rights in 
today’s globalization, one should pay attention to 
D.M.  Chybisov’s research, which states that the 
emergence of IP protection was associated with the 

possibility of commercialization of IP results. The 
current concept of the protection of industrial property 
is provided for, in particular, in the Agreement on Trade 
Aspects of IP Rights, also provides patent protection of 
the invention only on condition that it is commercially 
viable (Article 27 of the Agreement), which may 
indicate that it is precisely industrial suitability of the 
result of a certain intellectual activity plays key role in 
the property protection of IP (Chybisov, 2017).

Assessing the impact of patent clearance on the product 
competitiveness, it is possible to indicate respectively the 
economic and legal component of influence:
1) losses from potential claims of the patent holder, as 
sanctions for patent infringement must be substantial, 
which ensures the effectiveness of IP protection;
2) the legal component requires compliance with the 
rules and defined actions in the set of legal relations, 
including the determination of the extent of rights of 
existing patents and possible objections associated with 
the patent in a particular country at a particular time, 
such as, for example, in relation to expiration or for other 
reasons, patents whose validity may have expired earlier.

An assessment of the importance of using patent 
information in the innovation process, which was obtained 
by experts from the European Patent Office (EPO) as a 
result of the study (EPO, 2017), is presented in Fig. 1.

According to EPO data, approximately 80-90% 
of respondents who innovate believe that technical 
information is significant at all stages of the innovation 
process. Information about business processes and 
property rights protection is of particular importance 
at the stages of applied research and subsequent 
commercialization; in general, the assessment of the 
importance of these types of information at all stages 
of the innovation process is approximately equal and 
makes up 65% of positive responses.

The source of technical information for the innovation 
process is, above all, Internet resources that are useful to 
more than 80% of inventors. The next important is the 
technical information that can be obtained from patent 
sources (more than 70%), followed by printed media 
(over 60%), personal contacts, databases, exhibitions 
and conferences, professional associations, forums, 
blogs, etc.

In general, information from patent sources is used 
at the stage of theoretical studies in 37% of cases, 
in the applied research stage  – 76%, at the stage of 
design work  – 77%, and at the stage of commercial 

 
 

 

 

 

Changes in the competitive environment 

Factors of the environment, their value 
and duration 

Total impact factor 

Accumulation of information for 
management 

Evaluation of information 
by the criterion of symmetry 

Estimation of the degree of information 
value of resources of the company 

Assessment of the system 
by the criterion of synergy 

Interconnection, interdependence, 
complementarity of system elements 

Creation of a strategy of 
competitiveness on the principles 

of information control and 
synergy 

 
70% of innovators 

use patent 
information 

72% consider 
patent information 

to be very 
important 

Information importance at stages: 
- theoretical research – 37%; 
- applied research – 76%; 
- design works – 77% 

Fig. 1. The importance of using patent information in the innovation process

Source: compiled by the author on the basis of annual reports from the European Patent Office



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Vol. 3, No. 5, 2017
implementation – in 67% of cases. Patent information 
resources are mainly the European Patent Office (75%), 
the German Patent and Trademark Office (DPMA) 
(30%), the United States Patent and Trademark Office 
(USPTO) (21%), the World Intellectual Property 
Organization (WIPO) (17%), Google (15%), and 
others. The importance of using patent information at 
the stages of the innovation process is noted by more 
than half of the respondents.

At the same time, obstacles to the use of patent 
information are the following factors: patent information 
has lost its relevance to innovators; unknown sources 
for obtaining patent information; patent information is 
too complicated, obsolete or expensive.

At the same time, in practice of the majority of 
firms in developed countries of the world, the study 
of patent clearance represents at least half of all types 
of patent research and is an important part of the 
commercial activity in the creation and sale of products, 
technologies, and services. Work on the provision 
and research of patent clearance is carried out before 
the beginning of the object’s implementation, that is, 
during its development. Participants in this process are 
both developers and specialists in the field of IP: patent 
workers, lawyers, economists (Kirillov, 2014).

4. Information component of the 
competitiveness management process

Another important factor contributing to the growth 
of competitiveness in the context of globalization is 

the dynamic capacity for the synergy of information, 
production, financial, and other resources in order to 
obtain maximum effect.

The information component in such a combination 
plays a key role since it connects all kinds of 
resources to a single decision-making system. The 
interconnection of elements of the decision-making 
system with the dominant role of information 
enables the organization to create new ones and to 
improve the existing strategies of competitiveness. 
In other words, the information component of the 
competitiveness management process is, in our 
opinion, one of the key factors for success.

It follows that the task of managing the 
competitiveness of enterprises in the current dynamic 
conditions pushes the enterprise to construct such 
business processes, the dominant characteristic of 
which should be both intellectualization of global 
marketing information flows and the ability of 
an innovative product of enterprise to best meet 
the needs of specific consumers, while providing 
competitive activity with simultaneous protection 
of the sources of its Smart competitive advantage. 
Consequently, in our opinion, the intellectualization 
of competitive market advantages is ensured, on the 
one hand, by the permanent updating of competitive 
knowledge on the basis of effective organization of 
the marketing information system and, on the other 
hand, by the ability of the enterprise to protect its 
intellectual capital.

 
 

 

 

 

Changes in the competitive environment 

Factors of the environment, their value 
and duration 

Total impact factor 

Accumulation of information for 
management 

Evaluation of information 
by the criterion of symmetry 

Estimation of the degree of information 
value of resources of the company 

Assessment of the system 
by the criterion of synergy 

Interconnection, interdependence, 
complementarity of system elements 

Creation of a strategy of 
competitiveness on the principles 

of information control and 
synergy 

 
70% of innovators 

use patent 
information 

72% consider 
patent information 

to be very 
important 

Information importance at stages: 
- theoretical research – 37%; 
- applied research – 76%; 
- design works – 77% 

Fig. 2. Influence of environmental factors on the formation of competitiveness strategies

Source: developed by the author



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Vol. 3, No. 5, 2017
The development of competitiveness as a process 

can be represented by modelling the influence of 
environmental factors on information flows in the 
process of formation of competitiveness strategies, as 
shown in Fig. 2.

The resulting impact factor for the company, which 
causes changes in the competitive position, is the 
difference between the increase and decrease in the 
volume of information the specific fluctuation that an 
organization achieves due to exchange with the external 
environment. Increasing the volume of information 
exchange leads to the effect of scale but complicates the 
process of its ordering.

Data collection and analysis requires consideration of 
the factor of symmetry of information, which shows the 
degree of ownership of information of various subjects 
of market relations. The unevenness of information 
flows causes the inappropriate behaviour of market 
participants, may lead to additional losses and, as a 
consequence, a possible restriction of competitive 

positions. In this case, it is advisable to use mechanisms 
for optimizing information flows.

5. Conclusions
According to the research results, the following 

conclusions can be made: one of the prerequisites 
for the successful functioning of the mechanism of 
formation of intellectual capital of the enterprise 
is the verified management of the organization’s 
information and scientifically substantiated provision 
of the process of obtaining the necessary information 
with the expected effects of their implementation; the 
formation of sustainable competitive advantages today 
should be ensured on the basis of intellectual capital in 
the process of innovation activity; the preservation of 
such competitive advantages of enterprises, including 
through patenting, is gaining increasing importance in 
the context of globalization, which is conditioned by the 
need for further research in this direction.

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