Innovative Companies: Peculiarities of Development Cycles

This article contains analysis of the evolution of approach to interpretation of the innovation concept. Peculiarities of the cycle of financial resources circulation in the modern economy are formulated and the interpretation of such terms as invention, innovation and innovative company are given based on it. Peculiarities of companies' behavior in consumer markets of innovative sectors are considered as well as peculiarities of life cycle of a specific innovative product and life cycle of an innovative company overall. It is shown that, if no demand limitation takes place, implementation of innovative products takes a company to dominant competitive position in the market. Thus, permanent innovative development of such a company allows it to keep high rates of its economic growth during long periods. An explanation of the deviation of real life cycles of innovative companies from theoretical trends is given. It is shown in the article that the nature of company's innovative developments changes as the company develops: the level of radical innovations decreases and the level of improving innovations prevails. At that, the company can still maintain high rates of growth through acquiring less successful competitors and developing innovative products that they have created, which can be considered as a stand-alone innovative project.