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Summary of research and developments

INTRODUCTION

Applicability of the topic. In terms of modern economic environment the key to development and competitive recovery of an enterprise is efficient implementation of innovations. However, innovation activity is considerably different from other forms of economic activity, first of all, in terms of higher risks, whose negative impact is to be minimized. Therefore, the problem of risk management is becoming more and more important.

It's worth mentioning the fact that the problem of risk management in innovation activity has been attended to in papers of many national and foreign scholars. However, it's still difficult to outline exact methodological guidelines in relation to a given process since there is a big number of various approaches to managing risks in innovation activity which don't take into account peculiarities of certain innovation activities. What is more, multidimensional character of risks results in discordance of terminology. Summing up all mentioned above, further research of risk management in innovation activity is becoming more actual.

The aim of a given paper is further elaboration of theoretical basis, methods and development of practical recommendations to do with managing risks in innovation activity.

The research objectives can be presented in the following way:

Research methods. The research under consideration has been carried out with the help of analysis and synthesis method, that of systematization, mathematical modelling in economics, abstraction, comparison and dialectics.

Practical approval of research results. The key results of a given research have been presented at All Ukrainian workshop conference of students and young scientists "Modern problems of managing investment and innovation activity" (Donetsk, 2011), IV International science video-conference "Managing the process of innovation in Ukraine: the problem of commercializing research and technology" (Lviv, 2012).

BASIC CONTENTS

The first part of paper "General theoretical fundamentals of managing risks in innovation activity" defines the specifics of implementing innovations as sources of risk, redetermines the concept of risk in innovation activity and analyses peculiarities of risk management. What is more, it defines the role of risk management in managing innovation activity of an enterprise.

Part 2 of the Master thesis "Developing methods for managing risks in innovation activity" expands on improving the structure and the essence of risk management process by means of accounting for peculiariries of innovations. It examines the most common methods of evaluating and managing risks, analyses several approaches to identifying he effectiveness of risk management in innovation activity and outlines guidelines for their further development.

Part 3 "Recommendations for risk management in innovation activity" is supposed to design a mechanism for improving forecasting of innovation activity in the system of risk management by means of transforming uncertainty into risk situation, as well as developing methods of measuring risk value when evaluating the effectiveness of innovation projects.

CONCLUSION:

  1. In modern terms of Ukraine's economy development the rates at which enterprises are implementing innovation remain rather low due to a number of factors one of whom is high level of risk this kind of activity involves. In order to facilitate innovation activity of enterprises it's important to reduce risks' negative consequences, otherwise stated, risks have to be managed.
  2. Risk management in innovation activity would be more effective should unique characteristics of innovations be taken into account. On the basis of the fact mentioned above the process of risk management should be accompanied by transforming uncertainty into risk situation and risk rating which would allow to acknowledge peculiarities of innovation activity.
  3. Incompleteness of the methods used for evaluating risks and analysing the effectiveness of risk management in innovation activity can result in miscalculation and error of estimation which will eventually lead to taking unreasonable and counterproductive executive decisions.

REFERENCES:

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  2. В.О. Василенко, В.Г. Шматько "Інноваційний менеджмент": Навчальний посібник. Видання 3є, вип. та доп./ за редакцією В.О. Василенко – К.: Центр навчальної літератури, 2005
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Note

At the moment of writing this abstract master's qualification work is not completed yet. Final completion is scheduled for December 2012. Full text of the work and materials on the subject of the work can be obtained from the author or her supervisor after this date.