INVESTMENT AND INNOVATIVE ACTIVITY OF ENTERPRISES UNDER MARTIAL LAW CONDITIONS

Abstract

The article examines the issue of investment and innovative activity of enterprises under martial law conditions, which undoubtedly negatively affect the ability of enterprises to attract investments and implement innovative projects. At the same time, it is substantiated that the development of investment and innovative activities of enterprises is one of the key factors of successful economic development of the country, and investments in new technologies, research and development help to create competitive advantages, provide stable growth and increase the profits of enterprises. The article describes the main factors that affect the investment and innovative activities of enterprises in wartime conditions, such as political and economic instability, the risk of assets loss, a decrease in demand for products and services, etc. It is reviewed the directions of investment and innovative activity of enterprises in the conditions of full-scale invasion, such as: development of new technologies and products, development of alternative markets, investment motivation, accelerating innovation, partnership and cooperation. The research of investment and innovation activities of enterprises under martial law has showed the following results: 1. The decrease in investment. Enterprises which are located in the area of military hostilities are decreasing their investment activities. This is because military conflict creates future conditions and risks, which affects investment decisions. 2. Rising security costs. Wartime conditions require special efforts of businesses to provide security for people and property. This leads to increased costs for security, hiring military units and equipment. 3. Reduced access to financing. The martial law circumstances undermine financial conditions for businesses, including access to credit and other sources of financing. Many financial institutions accept the high risk of such investments and limit lending to enterprises. 4. Decrease of innovation activity. The research found that enterprises under martial law reduce their innovation activities. It's caused by business risks, limited resources and not enough motivation to implement innovative decisions. 5. Impact on the national economy. The active military hostilities make a negative impact on the national economy: production is decreasing, economic growth potential and unemployment has a negative trend. This leads to social and economic problems which will continue even after the conflict ends. The conclusion of the article is that the investment and innovation activity of enterprises under martial law has its own specific features and requires increased attention to its planning. Achieving success in such conditions is possible for appropriate risk management, selection of effective strategies and search for new opportunities.