Innovation as a factor in the sustainable development of an industrial enterprise

The innovative activity is the main factor in a long-term perspective, defining the enterprise stability development. The innovative activity of any kind: processes, productive, marketing, organizational methods are connected with the risk of investments. As a rule, investments in the innovative activity can bring profit in a long-term perspective and require a long-term level in planning enterprise of financing and operating activity.

The innovative activity allows to accumulate potential, providing for further growth of enterprise stability. The results of enterprise stability development are increase in the volume of sale, in capacity and market share gains. Considering the development as a certain activity is necessary to point out that the activity of any base is its dominant components that are: activity and destination point. So, the key component of the development stands for the innovative activity, directed to achievement of economic growth. There are 2 innovative activity approaches that is: functional and complex. Emphasizing the functional sphere's method mostly the finance and complex which are directed on creating of the innovative activity's complex system of assessment and control.

At present time, the complex approach to the assessment activity on the microeconomic level are mostly famous in global practice as the balanced scorecard system, developed by Kaplan and Norton. Besides the financial indicators, the balanced scorecard system's factor includes such indicators as: internal business processes, customers instruction and career advancement. The financial indicators represent operating surplus, return on capital, stepped- up value, flow of money and the others. The component of the internal business processes determine processes, which are necessary to bring to perfection, using the complex innovative management.

The complex control model of business activity developed by Aniskin. The business activity within the framework of that model is picked out as a set of stable process implementing the enterprise of economic growth rate based on concerted development of its component external environment harmony.

The basic provision of the current model of business activity control are that:

• -    The enterprise of business activity improvement provides for sequential economic growth and continuous development of enterprise;

• -    The internal and external environmental factors are effected on the enterprise of business activity;

The integral business activity of enterprise within the framework of that model is stipulated by activity:

• -    The current activity includes marketing, productive activity;

• -    The strategical development includes innovative and investment activity;

• -    The external environmental effects include competitor's activity, deliveries men, customers, financial market, scientific-technical development, related legislative framework and political conjuncture.

The collection of facts of business activity is presented in figure 1. The submission of business activity allows to correct for activity of any type for a common enterprise economic status and stable process for controlling enterprise business activity.

The business activity's factors

The external factors

The internal factors

The competitors activity

The factors of the current activity «-

Market conditions

The development of financial market

Marketing activity

The development STP (scientific-technical progress) —The developmemt of----- competitors enterprise

The productive activity

The developmemt of factors

The development of legislative framework

The innovative activity

The political conjuncture

The investment activity

Pic. 1. The factors of business activity

Each company in different stage of the planning period is simultaneously in a state steady functioning and consistent development in the process of updating products. The current state implies the need for proportions in the ratio of current business activity to active development in order to ensure stable economic growth. Taking into consideration, that, if current production is aimed at maintaining equilibrium and stability of the production system, then the appearance of innovations violates for a certain period its balance and stability, which is reflected on the economic condition of the enterprise.

The contradictions between the production system and the conditions of competition in the market serve as a signal scrap about the need to move to the next stage of enterprise development. Restoring the balance of production relations at a higher quality level in the result of innovation requires significant investment and organizational effort. Difficulty managing enterprise in the transition period of innovative development due to the uncertainty of the expected results. The transition period is influenced by factors, the main which are:

• -    the amount of capital investment necessary for the implementation of innovation;

• -    the level of the existing technical base of production;

• -    the state of staff training;

• -    the impact of environmental factors.

All factors are interconnected to one degree or another and affect development, but with a basis that meets for ensuring the sustainable development of the enterprise, is innovative activity. Management of sustainable development of the enterprise on the basis of innovative activity carries out using an integrated approach. The concept of sustainable development management based on innovative activity is based on the following principles:

• -    strategic compliance;

• -    balance;

• -    dynamism;

• -    complexity:

• -    adaptability.

Al activities in the field of innovation activity management must comply with the strategy to the logical goals of the enterprise. Sustainability requires a balance between development interests and the interests of current activities in the cyclical functioning of the enterprise. At the same time, it is necessary to take into account the intensive change in the characteristics of activity in innovative processes [2].

Innovative activity is not homogeneous and factorial, but consists of many areas activities that should be integrated into a single complex, and the whole system should be timely but respond to changes in the external and internal environment. The total costs that the company directs to innovative goals without loss of sustainability determined by the resource capabilities of the enterprise. To provide stability while reinforcing innovation activity, resources must be distributed so that this distribution met the requirements of enterprise sustainability.

The distribution scheme of the total resources of the enterprise in the process of innovation activity is presented in figure 2.

Under the stability of the enterprise refers to the ability of the enterprise to maintain solvency and continue to function effectively. The overall sustainability of the enterprise is made up of values private types of sustainability: financial, economic, technological, organizational, personnel, environmental and others. In accordance with the level of the time horizon, stability is short-term (tactical) and long-term (strategic). Tactical and strategic resilience have different dependencies from the value of innovation activity. Tactical sustainability decreases with increasing innovation activity, since the diversion of resources to innovation significantly reduces the current solvency, which reduces the financial, and then the overall stability of the enterprise. Strategic sustainability decreases with a decrease in innovative activity, as it leads to a lagging behind competitors in one or several business sectors. For the purpose of assessing the financial stability of an enterprise in the context of the implementation of innovative projects, it is necessary to use liquidity ratios: general (current) liquidity ratio, quick liquidity ratio, absolute liquidity ratio, financial ratio addictions.

It is believed that the absolute liquidity ratio for the period acts as the most important indicator of the solvency of the enterprise. Using the current solvency indicator allows you to monitor the implementation of innovations in terms of ensuring the identification of instability zones, determined on the basis of the indicator of the acceptable solvency level. Thus, increasing innovation activity provides strategic sustainable envelopment based on a balance of innovative processes and processes of current activities, taking into account resource enterprise capabilities.