Study purpose: scientific substantiation of an innovative approach to economic concepts related to productivity and determination of the location of labor productivity in the product value added chain to ensure sustainable development. Methodology: the development of a model for creating added value with the allocation of a stage in it at which human labor is used, allowed the author to determine the possibility of setting goals for the short, medium and long term for various stages of production. The article substantiates the need to divide the principles of calculating labor productivity by stages of added value creation, highlighting the stage of creating innovations. As a result of the decomposition of the goals of the production system, the author comes to the conclusion that there is a need for more accurate positioning of labor productivity in the value-added chain and the transition from setting the goal of increasing labor productivity to solving a problem that ensures an increase in the efficiency and stability of the entire economic system. As a result of the research, a model for coordinating the growth of labor productivity and investment directions to achieve high rates of productivity and stability of the economic system has been drawn up.
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