Importance of the formation of value added sequence as part of the industrial and innovative development

Abstract

The relevance of manufacture of products with high added value arises
from the conditions and requirements of the scientifically and economically
important market economy. The amount of added value, as an economic
category, is used to determine the efficiency of manufacture. Added
value is a difference between the cost of products sold by a company, and
the cost of materials purchased by a company to manufacture products.
In other words, added value is an extra added value in the processing of
goods in promoting them to the market. Added value is a product derived
as a result of social, personal labor or a result of activity of many manufacturers.
Since added value is calculated as the difference between the
goods sales’ proceeds and the cost of raw materials and services, used in
the manufacture of goods, if we reduce the cost of current raw materials,
energy and other material and technical resources, this will increase the
amount of total added value, and will respectively improve the resulting
effect of an industrial complex.