In the article the authors present the main positions that reflect the attitude to the problem of the need to develop the innovative potential of the enterprise to increase its competitiveness. The main directions of the functioning of the innovation system of the enterprise are identified, and the problems of ensuring the innovative market efficiency of R&D are identified. Particular attention is paid to a comprehensive assessment of the level of innovative activity of an industrial enterprise, taking into account indicators of the financial and economic activity of the enterprise and innovative potential from the perspective of an innovative marketing approach. Also, the work also reflects the need to develop and implement a competitiveness system at the enterprise, taking into account its innovative activity, which is a complex of interaction of these economic phenomena. The main components of this system and the main aspects of managing the competitiveness of an industrial enterprise, taking into account its innovative potential, are determined. As a result of the study, the authors revealed the relationship of organization functions and elements of the competitiveness system with the innovative development of an industrial enterprise. The study conducted by the authors allows us to conclude that in order to identify optimal conditions for the innovative development of an industrial enterprise with a view to the sustainable growth of its competitiveness, it is necessary to take into account the complex nature of building a competitiveness system and correctly identifying development priorities and allocating enterprise resources.