Economic potential: structure and economic essence

The paper attempts to rethink the content and essence of the concept of economic potential. The authors propose an understanding of the economic potential as a result of the interaction of resource-production and market potentials. In this regard, their essence and structure were revealed, the forms and directions of development were determined. Along with the achieved value of resource-production and market potentials, it is proposed to highlight their marginal changes caused by both extensive and intensive factors, which include innovative factors of development. The authors put a slightly different meaning into the nature of the limiting potential. So, if we consider it in relation to the resource and production potential, then it can be represented by several components, depending on the goals and conditions, both the functioning and development of an economic entity. It can have a negative value if there is a moral (physical) aging of fixed assets, technologies or products. The same thing happens when the market opportunities of a product are reduced due to the influence of various external factors. A favorable external environment can increase the product's market opportunities and provide conditions for the growth of resource and production potential. In this case, the limiting potential will be positive. Development, as a rule, is identified with innovations that form innovative potential. At the same time, they can be associated with the product and technologies, raw materials, management system or market. For the purpose of subsequent evaluation of the selected elements of economic potential, the content of the concept of potential is disclosed as opportunities, abilities and readiness of the economic system to implement extreme changes. The introduction of the category of readiness into the content of the concept of potential makes it possible to formulate requirements for the values of marginal changes in relation to the selected elements of economic potential, as well as for the time period for them to reach the required values. The study concludes that it is necessary to balance changes in resource-production and market potentials that ensure the most efficient use of resources in managing economic potential.