A mathematical model of innovative product development

Subject. This article discusses the transformation of a product into an innovative one and the factors that determine this process. Objectives. The article aims to identify the factors that determine the process of product transformation into an innovative product and offer a mathematical model for the formation of an innovative product and recommendations for product transformation into an innovative product. Methods. For the study, we used process and mathematical modeling methods based on a systems and information approach. Results. The article identifies and analyzes the factors that determine the process of product transformation into an innovative product. It highlights certain laws of product transformation into an innovative product and proposes a mathematical model of innovative product formation and recommendations. Conclusions. An increase in the consumer value of a product due to innovation will increase the demand for this product, and consequently, its market price will also increase. At the same time, a consumer buying an innovative product, although it will incur high costs in absolute terms, but given that an innovative product is able to better satisfy the consumer’s need, will benefit in relative terms.