Innovation as a factor of competitiveness and company’s market dominance

Andriana Mazur, Solomiia Papirnyk


Introduction. The article identifies the features of the functioning of the world’s leading technology companies in digital markets. The study is devoted to the identification of key criteria of market dominance on the example of GAFAM companies, in particular, the scope of each company and the growth rate of market value are described. It is investigated that despite the high level of diversification of Internet companies, most of their income and profits they receive from the main activity. For each company, the industry in which it is dominant is outlined.

Purpose. Identification of innovations as an important factor of competitiveness and dominance of the company in the digital technology market; analysing the activities of GAFAM companies to identify the impact of innovation on market dominance of companies on the criteria of key indicators of market value growth rates and research and development (R&D) costs.

During the research such methods were used as: dialectical method and methods of analysis and synthesis – to study the peculiarities of the formation of resource potential of the world’s leading Internet companies; statistical method – analysis of the growth rate of market value and R&D expenditures of the five American technology giants GAFAM; structural and logical analysis – outlining the advanced innovations generated by GAFAM that directly affect the world community.

Results. Emphasis is placed on the specifics of the profitability of the main activities of technology companies, within which the analysis and comparison of elements of the development strategy of corporations Meta Platforms, Inc. and Inc. are made. The dynamics of Internet companies’ expenditures on research and development (R&D) for the last seven years is given. The peculiarity of Inc.’s accounting, which contributes to its leading position in the industry in terms of R&D expenditures, has been identified. The key innovative products of the world’s leading technology companies are considered.


technology companies; GAFAM; market value of the company; innovation; R&D

Full Text:



Partyn, H., Zahorodnii, A. & Pylypenko, L. (2021). Entrepreneurial structures of the digital economy and problems of evaluating the effectiveness of their activities. Finansy Ukrainy, 1, 103-116. Retrieved from:

Dolata, U. (2017). Apple, Amazon, Google, Facebook, Microsoft: Market concentration – competition – innovation strategies. Stuttgarter Beiträge zur Organisations- und Innovationsforschung, SOI Discussion Paper, [Online], No. 2017–01, Retrieved from:

Vdovychenko, Yu. (2018). Digital technologies as the basis and driving force of modern global economy, Ekonomika ta derzhava, 1, 79-82. Retrieved from:

Zaprovodiuk, A. (2016). Corporate venture business in the development strategies of the most innovative companies in the world. Prychornomors'ki ekonomichni studii, 6-11, Retrieved from:

Liashenko, V. & Vyshnevskyi, O. (2018). Tsyfrova modernizatsiia ekonomiky Ukrainy iak mozhlyvist' proryvnoho rozvytku [Digital modernization of Ukraine’s economy as an opportunity for breakthrough development], NAN Ukrainy, In-t ekonomiky prom-sti, Kyiv, Ukraine.

Dovbenko, V. (2019). Evaluating the effectiveness of the latest information technologies in the economy, Pobudova informatsijnoho suspil'stva: resursy i tekhnolohii: materialy XVIII Mizhnar. nauk.-prakt. konf. [Building an information society: resources and technologies: materials of the XVIII International. scientific-practical conf.], September 19- 20, 2019. Kyiv, Ukraine, pp. 92–95.

Imlah, B. (n. d.) (2013). The Concept of a Digital Economy. Oxford Digital Economy Collaboration Group, Retrieved from:

Watanabe, C., & Tou, Y. (2019). Transformative direction of R&D–lessons from Amazon's endeavor, Technovation, [Online], Vol. 88, Retrieved from:

Brand Finance (2022), Brand Finance Global 500 2022, Retrieved from:

Jeran, Wittenstein & Thyagaraju, Adinarayan. (2021). Apple Nears $3 Trillion in Market Value. Here’s Some Context, Bloomberg, [Online], Retrieved from:

Kunytskyi, O. (2021). Apple increased revenue by almost 54%. The lion's share of growth was provided by iPhone sales, Forbes, [Online], Retrieved from:

The official site of Yahoo! (2022), Retrieved from:

The official site of Buffett.Online (2022), Retrieved from:

Green, T. (2018). How Much does Amazon Spend on R&D? Less than You Think, The Motley Fool, Retrieved from:


Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM


  • There are currently no refbacks.

Copyright (c)

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.


Articles are distributed under Creative Commons Attribution  International 4.0 (CC-BY-NC 4.0) 

Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

© West Ukrainian National University

© «Ekonomichnyy analiz», 2007-2023