Resource potential of knowledge generation under the digital economy

The paper models the process of knowledge generation, which is an important internal reserve for innovative development and growth of enterprises in conditions of the digital age of the knowledge-based economy. The methodology of the research involves the resource-based view and institutional theory. In terms of methods, the research relies on functional analysis and additive modelling. The authors theoretically ground that by changing types of economic relationships and making technologies more sophisticated, digitalization transforms local institutional environment of the product life cycles. The researchers suggest a definition to the concept “resource potential of knowledge generation”, which extends the notion about the elemental composition of enterprises’ innovative potential. For each out of seven stages of a hightech product life cycle the authors determine the results of intellectual activities and institutions of knowledge generation. The researchers construct an additive model of resource potential of knowledge generation on the basis of an average weighted assessment of material, financial, labour and information resources spent at every stage of a product life cycle. Empirical assessment of actual distribution of resources in the process of knowledge generation allows detailing the theoretical model and specifying the directions for optimisation of resource utilization. The research findings can be applied to plan innovative activities and design strategies of extended reproduction of intellectual capital of enterprises.