Innovative activity as object of investment

Modern scientific and technological progress is inconceivable without an intellectual product obtained as a result of innovation.

Innovation as an economic category reflects the most common properties, attributes, relationships and relationships of production and innovation. The essence of innovation is manifested in its functions. The functions of innovation reflect its purpose in the economic system of the state and its role in the economic process. A special role is played by innovations in increasing the competitiveness of enterprises

Innovation means «investing in innovation» as a result of the practical mastery of a new process, product or service.

Novation is an innovation that was not there before: a new phenomenon, discovery, invention, a new method of meeting social needs.

Innovation is a materialized result obtained from investing in new technology or technology, into new forms of organizing labor production, maintenance, and management.

The process of creating, mastering and disseminating innovations is called innovation activity or innovation, the result of innovation can also be called an innovative product.

The division of innovations into specific groups by certain characteristics is called the classification of innovations. In the practice of innovation management, various innovation classifiers are used.

Depending on technological parameters, innovations are divided into product and process. Product innovations include the use of new materials, new semi-finished products and components; Reception of essentially new products. Process innovations mean new methods of production organization (new technologies).

By the type of novelty for the market, innovations are divided into: new for the industry in the world; New for the industry in the country; New for this enterprise (group of enterprises).

On the stimulus of appearance (source), we can distinguish:

• •    innovations caused by the development of science and technology;

• •    Innovations caused by the needs of production;

• •    Innovations caused by market needs.

By place in the system (at the enterprise, in the firm), one can distinguish:

• •    Innovations at the enterprise entrance (raw materials, equipment, information, etc.);

• •    Innovations at the output of the enterprise (products, services, technologies, information, etc.);

• •    innovation of the system structure of the enterprise (management, production).

Depending on the depth of the changes introduced:

• •    radical (basic) innovations that implement large inventions and form new directions in the development of technology;

• •    Improving innovation, which implements small inventions and prevails in the phases of the spread and stable development of the scientific and technical cycle;

• •    Modification (private) innovations aimed at partial improvement of obsolete generations of technology and technology.

We can say that innovation performs the following three functions:

• •    Reproductive;

• •    investment;

• •    stimulating.

Reproductive function means that innovation is an important source of financing for extended reproduction. The meaning of the reproductive function is to profit from innovation and use it as a source of financial resources.

The profit obtained through the implementation of innovation can be used in various areas, including as capital. This capital can be used to finance new types of innovation. Thus, the use of profit from innovation for investment is the content of the investment function of innovation.

Getting an entrepreneur profit through the implementation of innovation directly corresponds to the main goal of any commercial organization. Profit serves as an incentive for the entrepreneur to introduce new innovations; Encourages him to constantly study the demand, improve the organization of marketing activities, apply modern methods of financial management. Together, this is the content of the stimulating function of innovation.

The innovation process can be considered as relatively isolated, having its own final product and using traditional processes and structures as means of its implementation without any significant change (for example, the issue of a technical product that does not replace the production of existing products but complement them). Management of such a simple type of innovation process is reduced to allocating resources to support this process and creating additional incentives for participating in the process of providing systems and services.

Recognition of the utility of a new concept or idea by the end user causes a change in the external environment. The useful, useful function is the difference of innovation from discovery and invention. Discoveries and inventions do not have social and economic value, if they do not become the basis of innovation. Secondary implementation refers already to the update.

It is advisable to introduce a division: innovations of the first kind include new discoveries, inventions, ideas first introduced into production by innovators, who receive primary excellence and are often financed from centralized sources; Innovations of the second kind include inventions, know-how, ideas and discoveries introduced repeatedly by imitators, i.e. Such innovations are no longer new in the world. If innovations of the first kind are not mandatory for all enterprises, then innovations of the second kind are mandatory for everyone, and they are more often financed from credit sources in venture and other forms.

The creator of the new technology. Innovator, proceeds from such criteria as uniqueness and novelty and the simulator - from such criteria as the product life cycle and its economic efficiency.

Uniqueness can be achieved only if the personnel of the enterprise has its own, original knowledge and skills in this industrial field. Innovations are extremely important for organizations that sell licenses.

Under the influence of modern changes, trends and processes in both technology and the economy, new needs are being formed that can not be met by the available results of people's activities. There are problems, the solution of which is possible only by constructing new means and products, new organizational forms. Thanks to the innovative activities of people, which is the content of any innovation.

Source used:

• 1.    Innovative management / Ed. S.I. Ilyenkovoy - M .: Unity, 2001.

• 2.    Innovative management / Ed. LNOgolovoy - Moscow: Infra-M, 2001.

• 3.    Kokurin D.I. Innovative activity. - M .: Examination, 2001.

• 4.    Kruglova N. Yu. Innovative management / Under the scientific. Ed. DS Lvov. - Moscow: Step, 1996

• 5.    Morozov Yu. P. Innovative Management: A Textbook. - M .: UNITY-DANA, 2003.

• 6.    Fundamentals of innovation management / Ed. PNNavnina - Moscow: Finance, 2000

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• 8.    Innovative management / Ed. S.I. Ilyenkovoy - M .: Unity, 2001.

• 9.    Innovative management / Ed. LNOgolovoy - Moscow: Infra-M, 2001.