Theme of master's work:
"Estimation of the efficiency of innovative projects at the enterprises"
Scientific adviser: Candidate of economic sciences, associate professor Andrey MESHKOV

Summary of research and developments

Theme relevance. It a well known fact, that investments are one of the most important indicators of vitality of any society in the large. Therefore, during the period of  country’s economic  transformation  the importance of investment activity considerably increases. A very important part of investment activity of any economic player is financing of innovative projects. It is not at all surprising, as research and development progress in modern society has powerful influence on rates of economic growth and level of country’s development in business intelligence integration. Obviously, only those countries will win competition in the global village, which will ensure favourable conditions for effective innovative activity. By innovative activity we understand research and development of innovative projects and programs.

Research of investments, innovations and innovative processes, and also of knowledge necessary for effective evaluation of innovative projects captured attention of many authors. The range of problems of innovative activity, innovative projects are touched upon in works by foreign and domestic authors: V. Aleksandrova, I. Alekseyev, O. Amosha, J. Zhelala, I. Balabanova, D. Kokurina, A. Kuznetsova, O. Lapka, I. Lunina, N. Lapina, J. Ludchenko, O. Motovilova, S. Naumenkova, S. Onishko, A. Prigozhina, A. Savchuka, G. Tugan-Baranovskiy, L. Fedulova, R. Fathudinov, M. Chuhray, J. Shumpeter, J. Jakovtsja, A. Jakovlev, etc.

Despite the fact that in the world practice there are many scientific approaches to the definition of innovative projects efficiency, almost all of them make it possible to evaluate project efficiency only after its introduction. Besides, the majority of techniques imply processing and analyzing of great volume of information, which in conditions of unpredictable new product market is almost impossible to collect.

Thus many questions of theoretical and methodological character concerning complex research of management problems and problems of estimation of innovative activity of the enterprise require profound study. Taking into the account the current economic situation in Ukraine there is a high urgency in research and development of economic evaluation of innovative activity and innovative projects of economic players.

The purpose and research problems. The purpose of the Master’s degree  work is to develop  theoretical and practical recommendations on how to perform most efficiently evaluation of innovative projects at the enterprises.

In accordance with the purpose of the Master’s work such research problems are defined:

• To advance the investment process at the enterprise;
• To specify features of implementation of innovative processes of economic players;
• To consider the information supply of investment and innovative activity of the enterprise;
• To investigate  the critical analysis of evaluation methods of innovative processes efficiency;
• To advance system of indicators of innovative efficiency;
• To analyze conditions of innovation implementation at the enterprise;
• To develop methodological recommendations on the performance of innovation evaluation;
• To justify the interest rate of discounting of the innovative project;
• To grant a substantiation of implementation expediency of the innovative project at the enterprise.

Object of diploma. These are innovative processes which are carried out at the enterprises in Ukraine.

Subject of diploma. These are principles and methods of efficiency definition of innovative decisions.

The research methodology comprises of scientific works of domestic and foreign scientists concerning innovative activity, performance of innovations evaluation, management of innovative risks, and the current legislation of Ukraine which regulates innovative activity.

In order to solve the problems of research general scientific methods of research will be used: a system analysis method, a statistical analysis method, a comparative method, a forecast method and mathematical method.

The scientific value of the Master’s degree work lies in theoretical substantiation and the solution of a complex of problems of organization, methodology  and practical use of recommendations concerning the evaluation process of innovative projects at the enterprises.

The practical importance of work is in the assistance of solving the problems of efficiency of innovative activity at the enterprises in the conditions of market economy. Results of research can be used for the analysis, estimations and decision-making concerning introduction of innovations in economic players.  Recommendations and conclusions which have been received during the research are directed to improve the estimation of innovations. Implementation of practical recommendations in the activity of the enterprises will allow to increase scientific substantiation of administrative decisions and interaction of workers of department with marketing service, to make changes to a technique of introduction evaluation of innovations.

The basic contents of Master’s degree work

In the first section "Development of Theoretical Bases of Evaluation of Investment and Innovative Activity at the Enterprise" the basic  lines and problems of investment and innovative development  are investigated, genesis of the given problem in works by  foreign and domestic economists are analyzed, theoretical regulations on the  essence of such economic concepts as "innovation", "innovative process", "the innovative decision" are specified; the basic  tendencies of state regulation of the innovations are revealed. Also the basic sources of the analysis of innovative activity were defined in the first section. So, the research conducted in this section gives understanding of how important problem of the enterprise in innovative sphere is the task of selection of innovative projects for the further implementation on the alternative beginnings and application of techniques which would consider all aspects of activity of the enterprise and show efficiency of the innovative project not only after its introduction, but also at the stage of its research and development.

In the second section "The Analysis and Evaluation of Innovations" necessity of criteria selection was defined while evaluating the innovation efficiency. In this section the procedure of the generalized estimation of innovations of economic players has been considered. The essential aspect of evaluating the innovative project is the development and selection of the thorough list of criteria. Criteria groups of primary concern are:  entire organizations, strategy, policy and values; scientific and technical criteria; financial criteria; external and ecological factors; industrial criteria. On the basis of studying and generalization of references the resulting indicators of substantiation and implementation of innovative projects (the pure resulted income; discounted payback period; norm of internal profitability of innovations) are formed.

Realization in section of the analysis of economic evaluation methods of innovative projects will show complexity in making the right decision doing the evaluation of innovations in the pure state. And so, in the third section we face a problem concerning working out of own recommendations of techniques of evaluation of innovative projects.

In the third section "Recommendations from Evaluation of Innovative Projects of Economic Players" we formulate and justify the recommendation approach to the estimation of economic efficiency of innovative projects of economic players; we propose a method of risk minimization of innovative production.

During research we justify possibility of use of dynamic indicators of capital investment projects (NPV - the net profit, DPP - discounted payback period, ІRR - internal revenue regulations) for evaluation of innovative projects. In order to reduce the risk influence on the final results of innovative projects work we propose in our work a method of minimization of production risk of innovations.

References

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Remark

The master’s work was not completed yet while writing this abstract of thesis. The date of completing is 1 December, 2009. The full text of the work and the material on this subject can be received from the author or its curator after the given date.