Problems and Factors of Construction Business Innovation and Investment Development

The article is dedicated to consideration of theoretical and applied aspects of the main balance factors of construction business successful innovation and investment development. The analysis of scholars’ works enabled presenting the components of a construction enterprise innovation and investment development, in particular process, resource and potential. Considering the relationship between innovation potential and development, the author's definition is suggested, where construction business innovative development is an activity based on constant search and use of new methods, technologies and areas of enterprise potential realization in changing external and internal market of construction products and the adopted competitive strategy of activity and business development. Analysis of the problems associated with conservatism and slowness in introduction and dissemination of new technologies in the construction industry is performed. Despite the fact that energy-efficient technologies are being actively introduced in the industry, “smart homes” are being built etc., analytical report of the Global Innovation Index states that the share of R&D expenditures in construction is only 2.9%. One of the reasons for such a low rate is that a significant part of new technological developments implemented in construction, originate from other industries, namely metallurgy, forestry and woodworking, chemical industries and others. It is established that innovation inertia of Ukrainian construction companies is determined by buildings and structures prolonged operation, during which the faults of the used technology may be revealed as well as builders’ high responsibility for the result, since construction products must be safe for people’s lives. In order to implement the strategy of construction company innovative development, it is suggested to create the success factors of innovation and investment development, which are balanced and to some extent interdependent. Adequate assessment these factors impact will enable choosing the right direction of construction business innovation and investment development and construction industry in general under pandemic and growing economic selfishness.