Labor productivity as a source for effective development of production

In traditional and modern economic theory, labor is considered as the most important factor in development of production. Because of this, most scientists studied the issue of efficiency for industrial production by assessing the factors of productivity growth The significance and value of increasing economic efficiency as a scientific and practical task, determine the difficulties of a methodological nature in measuring labor productivity and justifying its role in the long-term development of an enterprise. The purpose of this article was to characterize the economic category of "labor productivity" in the terms of improving efficiency for industrial production. The methodological basis of the present article are the general provisions of the modern economics, especially the theory of labor value, theory of social production, the modern theory of efficiency, theory of firm, production and costs, and the concept of innovative development. The authors considered measurement methods and substantiated the main criterion of labor productivity, and presented a scheme for calculating labor productivity on the basis of the individual value of the product. This article examines the possibility of obtaining cost savings (additional profit) as a result of increased productivity. These savings are considered as the basis for formation of innovative funds in the enterprise.