Granting credits for innovative programs at industrial enterprises: efficiency conditions

Innovative development of enterprises and territories becomes possible when there are suitable financial resources. Here special importance is acquired by the infrastructure elements that ensure financing innovative programs at enterprises, particularly by commercial banks. This article aims at exploring the limits of economic expediency for banks and other financial institutions when crediting innovative activity of industrial enterprises. A special practice-oriented technique has been designed to determine economically expedient crediting volumes, which can be used by both banks and other financial institutions. The expediency criterion suggested for selecting the innovative projects worth crediting is profit increment requirement. The sum expected should exceed the loan received and the expenses for implementation of the innovative program at the enterprise. As for the advantages and novelty of the proposed technique, it allows for reducing analysis of the variety of parameters, which characterize both the innovation aspect and crediting options, to analyzing a set of core indicators. The accepted approach ensures conciseness of the technique. Using this technique, it is possible to conduct a comprehensive analysis of a wide range of available options within a short time, which, in its turn, gives an opportunity to quickly select the crediting organization, meeting the demands of the lender and the borrower. In the long-term perspective the suggested technique lays the foundation for regulatory norms that could objectively formulate the bounds of economic expediency for crediting industrial enterprises' innovative activity. Such normative parameters are advised to be inserted thereafter into the acts and statutes that should regulate functioning of industrial enterprises, as well as of all entities involved in providing financial support for innovation work at industrial enterprises.