Innovation according to international standards represents the final result of innovative activity, which has become widespread in the form of a new or improved product introduced on the market, a new or improved technological process used in practical activities.
Innovation activities are based on the following basic principles:
- priority of innovative production over traditional;
- efficiency of innovative production;
- adaptability.
The activities of an innovatively active enterprise are aimed at using the results scientific research and development work to make a profit based on expanding and updating the range of products (goods, services) by improving technology, management, improving product quality, improving technology and organizing its production, and ultimately conquering new market segments.
Innovative activity in modern conditions depends primarily on the scientific and technical potential of the enterprise, which includes:
- scientific, technical and engineering personnel, creatively thinking managers;
- adequate material and technical base and R&D;
- a highly organized system of information support, management of the development of telecommunications in the economy.
During the period of the spread of crisis phenomena at almost all levels of the world economic system, the dialectic of development of innovation and investment activity in the field of industrial production is implemented using highly effective tools and methods of modern theory of innovation, synergetics, cybernetics, systems theory, methodological developments in terms of automation and informatization of production systems and creating ultra-efficient innovation and investment production systems that represent a harmonious symbiosis of research and production potentials.
Real investments are made at enterprises in various forms (reconstruction, modernization, repurposing, renewal of certain types of fixed assets, new construction, investments in R&D, intangible assets and intellectual products, etc.).
Innovation is the final result of innovative activity, embodied in the form of a new or improved product, a technological process used in practical activities, or a new approach to socio-economic services.
Innovation – finished result basic research, developments or experimental work in a certain field of activity to improve its efficiency. And very important point at the enterprise are the introduction of innovation, turning it into a form of innovation, thereby carrying out innovative activities and achieving the necessary efficiency. To do this, it is necessary to conduct marketing research, R&D, organizational and technological preparation of production, carry out production and document the results.
The process of strategic marketing, R&D, organizational and technological preparation of production, production and design of innovations, their implementation (or transformation into innovations) and dissemination to other areas (diffusion) is called innovation activity.
The scheme for transforming innovations into the main products of an enterprise is shown in Fig. 1.6.
Rice. 1.6. Turning innovation into innovation and finished products enterprises
The goal of an enterprise's innovation activity is to obtain results through innovation. The innovation portfolio is a comprehensively justified list of innovations, purchased and developed in-house, to be implemented at the enterprise. This portfolio is developed already at the research stage of comprehensive production preparation, and then supplemented and improved in the process of investment activity of the enterprise.
The organization of innovation activities should always be aimed at streamlining the processes of generating new creative ideas, searching and developing scientific, technical and organizational and managerial solutions, and continuously introducing innovations in the enterprise. At the same time, the organization mechanism is focused on the design and reorganization of structures that carry out innovative processes.
There are various forms of such work: creation, acquisition, innovative integration, spin-off. Creation is the formation of new structural units that carry out innovative activities (ID). These can be scientific and technical units, matrix structures, centers, internal venture organizations, etc. The effectiveness of ID increases significantly when creating new innovative structural units, especially large enterprises (on a permanent or temporary basis).
Independent venture organizations are widespread abroad. Until recently, there were no state venture capital organizations in our country. The first of them, the Russian Venture Company, was created on June 7, 2006 by decision of the Russian government.
Venture organizations operating in complex, risky conditions of a market economy are engaged in the direct implementation of innovations aimed at a new market niche. Internal ventures, engaged in such activities, are quasi-independent, i.e. they have the attributes of independence, have their own current account (sub-account), but at the same time they are structural divisions of a large enterprise, use its production space, equipment, etc.
The absorption of small and medium-sized innovative firms by a large company in market conditions is possible. Close connections can be established between a large company and small innovative firms on a long-term basis. contractual relations(market innovative integration). In this case, small and medium-sized firms, while maintaining their independence, fall into the sphere of market production relations of a large company. The combination of absorption processes and market innovation integration is called the fan-shaped organization of the innovation process. A diagram of such an organization is shown in Figure 1.7.
Rice. 1.7. Fan-shaped organization of innovation activities of a large company
The point of creating a fan organization of ID is to create an innovative environment for a manufacturing company, consisting of innovative acquisition firms (IAFs) and market-integrated firms (RIFs). This organization, as a rule, pursues an active offensive strategy of innovative development in the market.
Finally, a process of separation can be carried out when independent innovative venture organizations are created, which were previously part of integral production entities (companies, large enterprises).
Domestic enterprises in a market economy must strive for constant development modern achievements NTP, be able to take risks and achieve positive results in innovative activities.
To increase profits at an enterprise, it is necessary to improve its investment activities. The following activities are expected:
Improving investment activities through equipment leasing;
As a result of the implementation of measures to improve the technology for repairing brewing equipment and the introduction of new equipment, the labor intensity of work is reduced, which makes it possible to increase labor productivity, increase revenue from the sale of work and reduce operating costs.
An indispensable condition for increasing the efficiency of managerial work is optimal information technology, which has flexibility, mobility and adaptability to external influences.
In order for the renewal of fixed production assets to occur cyclically (every 5-10 years), it is necessary to solve the problem of organizing the investment process - to compress it in time. This means that project development, construction, and development of production facilities to their full design capacity must be carried out within strictly regulated time frames.
Directions for improving the innovative activity of an enterprise
When it comes to innovation, a clear line needs to be drawn between which principles are necessary to create an effective innovative product, and which principles should not be used.
The principles necessary to create an effective innovative product:
Purposeful systematic innovation activity requires continuous analysis of the capabilities of the above sources of innovation;
Innovation must correspond to the needs, desires, and habits of the people who will use it;
Innovation must be simple and have a precise purpose.
Innovate more efficiently with little money, few people, and limited risk. Otherwise, there is almost always not enough time and money for the numerous improvements that the innovation requires.
Effective innovation must be aimed at leadership in a limited market, in its niche. Otherwise, it will create a situation where your competitors will get ahead of you.
Principles, the use of which negatively affect the creation of an innovative product:
The complexity of the design of an innovative product - problems arise during operation;
Incorrectly planned stage of creating an innovative product;
Innovation is changes in the economy, industry, society, in the behavior of buyers, producers, and workers. www.barmashova.ru Therefore, it must always focus on the market and be guided by its needs.
For an enterprise to carry out innovative activities, it must have a structure and mindset that would contribute to the creation of an atmosphere of entrepreneurship and the perception of the new as an opportunity. In this case, it is necessary to take into account a number of important points.
The basic organizing principle for innovation is to create a team of the best workers freed from their current jobs.
All attempts to transform an existing division into a carrier of an innovative project end in failure. This conclusion applies to both large and small businesses. The fact is that maintaining production in working order is already a big task for the people involved in this. Therefore, they have practically no time left to create something new. Existing divisions, no matter in what area they operate, are generally only capable of expanding and modernizing production.
Entrepreneurial and innovative activities do not necessarily have to be carried out on an ongoing basis, especially in small enterprises where such a setup is impossible. It is necessary to appoint an employee personally responsible for the success of innovation. He must be responsible for the timely identification and replacement of obsolete products, equipment, technology, for a comprehensive analysis of production and economic activities (x-ray of the business), for the development of innovative activities. The employee responsible for innovation activities must be a person of sufficient authority in the enterprise.
It is necessary to protect the innovation department from unbearable loads. Investments in the development of innovations should not be included in regularly conducted analysis of the return on investment until the new products or services are established in the market.
The profit from the implementation of an innovative project differs significantly from the profit received for the release of well-functioning products. Over a long period of time, innovative endeavors may produce neither profit nor growth, but only consume resources. Then the innovation must grow rapidly over a long period of time and return the funds invested in its development by at least 5-10 times, otherwise it can be considered a failure. Innovation starts small, but its results must be large-scale.
The enterprise should be managed in such a way that it creates an atmosphere where the new is perceived not as a threat, but as an opportunity. Resistance to change is rooted in fear of the unknown. Every employee must realize that innovation is the best remedy preserve and strengthen your enterprise. It is necessary to understand that innovation is a guarantee of the employment and well-being of every employee. Organizing innovative activities based on these principles will allow the enterprise to move forward and achieve success.
Thus, to improve the innovative activity of an enterprise, the following stages are necessary:
Implementation of a system of continuous improvements;
Improving the incentive and motivation system to encourage innovation (innovations);
Overcoming employee resistance to innovation;
Modification of the system for collecting internal and external marketing information;
Improving strategic management at the enterprise, regulating procedures for the development, consideration, approval, implementation and monitoring of innovative projects.
According to the chairman of the board of directors of General Electric, Jack Welch, whom Fortune magazine named the best manager of the 20th century: “Business is a simple thing: you have to produce cheaper, faster and better than everyone else, and for this you need to increase the productivity and efficiency of business management , and also innovate as much as possible.” This statement once again confirms the decisive role of innovation activity and the innovations resulting from it in the development of economic systems. However, it should be noted that increased productivity and business management will also be the result of innovative transformations.
The areas of innovation activity are understood as innovative projects aimed at both the development and mastery of new products and technologies. In this case, it is advisable to carry out comparative analysis profitability of each area of innovation activity, i.e. it is necessary to determine the likely increase in profit for each area of innovation and choose the one that will provide the greatest results.
Carrying out such work for domestic enterprises is especially relevant, since most of them are in crisis conditions and have limited financial resources that can be used to improve innovation activities and many of which are faced with the need to choose the most optimal development paths through innovative transformations. In this case, comparing the profitability of alternative directions for improving innovation activity is the most important tool for justifying decisions in the innovation field.
One of the most effective ways the introduction of a new product to the market is advertising.
Reaching a wide audience;
The possibility of a complex impact on the viewer (sound, image, movement and other means);
Targeting makes it possible to more accurately target your advertisement at the desired audience, selecting it by geographic location (placement on regional channels or broadcasts), interests (placement in thematic programs), and time of day.
Interview with a company manager or employee;
Informative article about the company.
Up to 90% of the population uses various types of transport (buses, trolleybuses, minibuses, metro) in any city. IN major cities a large number of visitors are added to them. The advertising possibilities of various vehicles are very wide.
The Internet today is the most rapidly developing sector of the domestic economy. And the most revolutionary event can be called the conquest of previously untapped advertising spaces by the Internet. Banners are still the main advertising field on the Internet. These are graphic or animated rectangles with bright drawings with enticing content, serving as a link to go to the advertised resource and posted throughout the Web. They are best placed immediately after opening the site, when you want to quickly inform about yourself.
The next element of advertising on the Internet can be special direct links, including announcements or the most interesting excerpts from the content of sites. This type of advertising is best for information and news sites, and attracts the most big number visitors subject to the publication of links on related sites.
The advertising function can be performed by creating a newsletter (with the publication of announcements and links) and participating in various reviews and forums. Thus, you actively advertise your resource among the general public.
Partnership is a truly powerful tool for promotion on the Internet.
As for taking part in exhibitions and conferences, this type of advertising is the most effective in finding new clients.
The following benefits are expected from participation in the exhibition:
Improving the company's image
Attraction of new clients;
Increase in company profits in the coming period.
Innovative activities of enterprises
Strategic management is a process that determines the sequence of actions of an organization to develop and implement a strategy.
The main task of any enterprise strategy is to achieve competitive advantages and the required profitability of production and economic activities. The solution to this problem is seen in determining the conditions that determine the position of an enterprise in a specific market.
These include:
The production potential of the enterprise is the availability of modern equipment, machinery and technologies and their rational use;
The economic potential of the enterprise is low production costs and financial stability of the enterprise;
The marketing potential of the enterprise is an effective marketing service, a developed sales network.
Also among the listed conditions it is necessary to include the innovative potential of the enterprise - the presence of scientific and technical groundwork, the presence of qualified scientific personnel, the ability to develop and master innovations, free access to modern information in the field of scientific and technical progress, etc.
Innovative potential indirectly characterizes the production, economic, and marketing potential of an enterprise.
It also characterizes their ability to strengthen in the future.
Consequently, initially any strategic decision is innovative in nature and is aimed at solving various problems: production, economic, marketing and others. Therefore, it is necessary to determine the place of innovation management in the strategic management process.
The innovative activity of an enterprise is a system of measures to use scientific, technical and intellectual potential in order to obtain a new or improved product or service, a new method of production to satisfy both individual demand and the needs of society for innovations as a whole.
Within the framework of the process approach, innovation is understood as a complex process, including the development, implementation in production and commercialization of new consumer values - goods, equipment, technology, organizational forms, etc.
The innovation process involves following features:
1) represents the implementation of research, scientific and technical, actual innovation, production and marketing activities;
2) it can be understood as the time stages of the life cycle of an innovation from the emergence of an idea to its development and dissemination;
3) from a financial point of view, it can be viewed as the process of financing and investing in the development and distribution of a new type of product or service. In this case, it acts as an innovative project, considered as a special case of an investment project.
In general, the innovation process consists of obtaining and commercializing an invention, new technologies, types of products and services, decisions of a production, financial, administrative or other nature and other results of intellectual activity.
Today, innovation is becoming more important than ever for businesses.
Instead of focusing solely on reducing costs to maintain a position in traditional price competition, companies must think in terms of growth and added value and create them through the use of knowledge in innovation processes. Those companies that are first to market with innovative products enjoy first mover advantages and collect increased revenue until competitors catch up.
An innovative product can be both new goods and new services. However, the innovation process is not limited to new production technologies; it also includes organizational systems.
The activity of an enterprise is associated with a continuous flow of diverse changes. Adaptation to innovation and its implementation require a variety of transformations, usually new to the organization and therefore innovative in nature. The chosen innovation strategy must be implemented. To successfully achieve the set innovation goals, a way to manage changes of an innovative nature is required.
In other words, the enterprise needs a model for managing innovation activities. The embodiment of innovative processes in new products is the basis of economic growth. Scientific and technological progress has led to the emergence of new technologies and industries and caused a significant transformation of the usual economic structure.
The feasibility of choosing a method and option for technical and technological updating depends on the specific situation, the nature of the innovation, its compliance with the profile, resource and scientific and technical potential of the enterprise, market requirements, stages of the life cycle of equipment and technology, and industry characteristics.
There are two types of technological innovation: product and process. New product introduction is defined as radical product innovation. Such innovations are based on fundamentally new technologies or on a combination of existing technologies in new applications. Product improvement - incremental product innovation - is associated with an existing product when its quality or cost characteristics change.
Process innovation is the development of new or significantly improved production methods and technologies, changes in equipment or production organization.
According to the degree of novelty, innovations are divided into fundamentally new, i.e. having no analogues in the past and in domestic and foreign practice, and innovations of relative novelty. Fundamentally new types of products, technologies and services have priority, absolute novelty and are original samples, on the basis of which imitative innovations are obtained by replication.
Investment activities
In a modern market economy, there are a huge number of opportunities for investment and a variety of investments. Along with this, almost any organization has limited financial resources that are available for making various investments. Hence the need to optimize the company’s investment portfolio. Here it is also worth taking into account the fact that such activities will constantly be associated with some uncertainty, the level of which can constantly change over a fairly wide range. In these circumstances, the ability to correctly assess the level of effectiveness of an investment project will be especially important.
Investments are a unique set of financial, labor and material resources that are used to increase capital, as well as to expand, technically re-equip or modernize production. The main goal of any investment is the extremely profitable and profitable placement of the enterprise’s own capital.
By her own, investment activities is the process of attracting, allocating, using and analyzing investments. Its goals can be various factors - expansion entrepreneurial activity the enterprise itself through the accumulation of material and financial resources, the purchase or organization of new enterprises, reducing the level of distribution costs due to an increase in total production volume, diversification due to the development of previously unexplored areas of business activity, and much more.
The main subjects of investment activity in modern economic conditions are legal entities, which include:
· business partnerships and societies;
· joint stock companies;
· production cooperatives;
· state and municipal
· unitary enterprises; non-profit organizations.
The organization of investment processes and the conditions for their occurrence largely depend on the organizational and legal form of the investor. Based on the form of ownership, investors are distinguished as private, state, foreign and joint.
In modern conditions, a large role is given to public investments, which are carried out by federal, regional and local authorities at the expense of budgets at the appropriate level, extra-budgetary funds, and borrowed funds.
It is also worth noting that today there are several various types investments:
Financial investments, which involve the process of investing capital in bonds, shares and other securities.
Real investments, which represent additional investments in the fixed capital of an enterprise, aimed at increasing the production and material reserves of the enterprise itself.
Gross Investment, which are the total investments required to increase and replace the fixed capital of the enterprise.
Net investment, presented as gross investment without taking into account depreciation amounts in fixed assets.
One of the most painful problems of the modern Russian economy is a sharp decline in investment activity, with the exception of investments in financial assets, which in most cases are speculative in nature.
The investment climate in Russia is determined by four main factors: economic; financial; socio-political; legal.
Economic and financial factors that negatively affect investment activity include:
Lack of stability and reliability in the functioning of the banking system;
Deficit of federal, regional and local budgets;
Monopoly high prices for energy resources;
Inflation and general decline in production.
Investment processes are negatively affected by socio-political instability, which manifests itself at all levels of the budget process, as well as the low pace of economic reforms. All this prevents the attraction of both domestic and foreign capital as investments.
In modern economic conditions, investment capital is formed as a result of the receipt of funds from the population, enterprises and organizations, as well as the state through various institutional structures of the capital market, which, as intermediaries, reinvest the savings entrusted to them in order to obtain a profit from the investment of funds. Therefore, in reforming the country’s financial system, the role of rational use of the financial potential of the population is increasing.
Methods for assessing an investment project
Net present value is the sum of the discounted values of the payment stream, reduced to today. The NPV indicator represents the difference between all cash inflows and outflows reduced to the current point in time (the moment of evaluation of the investment project). It shows the amount of cash an investor expects to receive from a project after cash inflows have paid off its initial investment costs and the periodic cash outflows associated with the project.
The evaluation process consists of several stages, during each of which the costs and benefits for different groups of the population are carefully assessed, and possible outcomes of the project that may entail additional losses or benefits are considered. Cost-benefit analysis involves four main steps:
1. determining the costs and benefits of the project;
2. assessment of costs and benefits;
3. comparison of total costs and benefits throughout the life of the project;
4. project selection.
Profitability index
The profitability index reflects the effectiveness of the investment project. Calculated using the formula:
If the value of the profitability index is less than or equal to 0.1, then the project is rejected, since it will not bring additional income to the investor. Projects with a value of this indicator greater than one are accepted for implementation.
Enterprise development factors: extensive and intensive.
In general, economic development can be either extensive or intensive.
The extensive type of economic growth involves expanding the scale of production. This means that economic growth is achieved due to an increase in the number of factors of production involved in production at the same level. technical basis. Extensive factors of economic growth reflect the quantitative side of increasing production volume due to an increase in the volume of used production resources. These include: an increase in the number of employees, an increase in capital investment, and an increase in the volume of consumed raw materials.
The intensive type of economic growth involves the use of more effective means production, technologies and processes. This means that economic growth is achieved through improved use of factors of production. Intensive factors of economic growth reflect the qualitative side of increasing production volume and by increasing the efficiency of use of production resources. These include: advanced training of workers, scientific and technological progress, improvement of technology and organization of labor and production, improvement of product quality.
Growth factors are divided into external and internal, and also, depending on the nature of growth, into intensive and extensive. Extensive growth factors include: increasing the volume of investment while maintaining the existing level of technology; increase in the number of employed workers; growth in the volume of consumed raw materials, materials, fuel and other elements of working capital. In other words, this is simply a quantitative, not a qualitative increase in the share of participation of production factors in the production process.
The structure of economic growth factors consists of extensive and intensive factors. Extensive factors include:
· growth in the number of employees;
· increase in fixed assets;
· growth in volumes of consumed raw materials.
Intensive factors include:
· scientific and technical process;
· improving the organization of labor and production;
· advanced training of employees;
· economy mode;
· improving product quality.
In a market economy, circumstances may arise when a sharp increase in demand can justify extensive factors for the growth of production. But extensive factors also require additional costs. For example, an increase in the number of machines and equipment will require additional capital costs for their acquisition, which is associated with bank loans and the payment of interest on them, an increase in production space, payment of taxes on acquired property, repairs and maintenance, etc.
Features of the development of a market economy modern stage objectively determine the preferential development of intensive factors in the long term, which is associated with the application of scientific and technological progress in practical production.
Innovation and investment activities of the enterprise.
In modern conditions, the successful operation of enterprises is impossible without innovation and investment.
Market conditions for economic development constantly put forward demands for not only quantitative, but also qualitative transformations.
These transformations can be carried out using the most advanced technology, continuously developing the scientific research base in order to ensure high quality innovations, which requires significant investments. You can use technological, product - innovation, process innovation. Using technological innovations, the company connects its activities with the development and mastery of new technological processes. Using product innovation, the company develops and implements new or improves previously produced products. At the same time, the enterprise strives to produce fundamentally new products for which the intended area of application (or use).
Innovative activities of enterprises
The word innovation is synonymous with, and can be used alongside, innovation or novelty. There are several approaches to defining the essence of innovation in the literature. The most common are two points of view: in one case, innovation is presented as the result of a creative process in the form of new products (equipment), technology, method, etc.; in another - as a process of introducing new products, elements, approaches, principles instead of existing ones.
Innovation - This is the result of the creative process in the form of created (or introduced) new use values, the use of which requires the individuals or organizations using them to change the usual stereotypes of activity and skills.
Innovation activities An enterprise is a system of measures to use scientific, scientific, technical and intellectual potential in order to obtain a new or improved product or service, a new method of their production to satisfy both individual demand and the needs of society for innovations as a whole.
Within the framework of the process approach, innovation is understood as a complex process, including the development, implementation in production and commercialization of new consumer values - goods, equipment, technology, organizational forms, etc.
The innovation process involves the following features:
1) represents the implementation of research, scientific and technical, actual innovation, production and marketing activities;
2) it can be understood as the time stages of the life cycle of an innovation from the emergence of an idea to its development and dissemination;
3) from a financial point of view, it can be viewed as the process of financing and investing in the development and distribution of a new type of product or service. In this case, it acts as an innovative project, considered as a special case of an investment project.
In general, the innovation process consists of obtaining and commercializing an invention, new technologies, types of products and services, decisions of a production, financial, administrative or other nature and other results of intellectual activity.
The embodiment of innovative processes in new products is the basis of economic growth. Scientific and technological progress has led to the emergence of new technologies and industries and caused a significant transformation of the usual economic structure.
The feasibility of choosing a method and option for technical and technological updating depends on the specific situation, the nature of the innovation, its compliance with the profile, resource and scientific and technical potential of the enterprise, market requirements, stages of the life cycle of equipment and technology, and industry characteristics.
There are two types of technological innovation: product and process. New product introduction is defined as radical product innovation. Such innovations are based on fundamentally new technologies or on a combination of existing technologies in new applications. Product improvement - incremental product innovation - is associated with an existing product when its quality or cost characteristics change.
Process innovation is the development of new or significantly improved production methods and technologies, changes in equipment or production organization.
According to the degree of novelty, innovations are divided into fundamentally new, i.e. having no analogues in the past and in domestic and foreign practice, and innovations of relative novelty. Fundamentally new types of products, technologies and services have priority, absolute novelty and are original samples, on the basis of which innovations-imitations and copies are obtained by replication.
Investment activities
Investments are a unique set of financial, labor and material resources that are used to increase capital, as well as to expand, technically re-equip or modernize production. The main goal of any investment is the extremely profitable and profitable placement of the enterprise’s own capital.
Investments (from English investments) are long-term investments of capital with the aim of generating income and profit. At the same time, by benefit it is necessary to understand not only the receipt of additional profit by the enterprise, but also maintaining the achieved level of profitability, reducing possible losses, expanding the circle of customers, conquering new markets for products and services, winning the competition, etc.
There are real (capital) and financial (portfolio) investments.
Real investments are investing money in capital construction, expansion and development of production, creation of new fixed assets, reconstruction of old assets or their technical re-equipment, formation of enterprise personnel, research and development. Investing in the material sphere is extremely important for enterprises in the real sector, as it ensures the stable development of their production activities.
Financial investments are the acquisition of securities, shares, bonds, other financial instruments, and the investment of money in deposit accounts in banks at interest. In the absence of a project and the possibility of capital investment, they resort to financial investments. For example, a company can acquire a controlling stake in a promising enterprise, thanks to which it will be able to directly influence its work and make decisions that are beneficial to itself, including in the investment activities of this enterprise.
By her own, investment activities is the process of attracting, allocating, using and analyzing investments. Its goals can be various factors - expanding the entrepreneurial activity of the enterprise itself through the accumulation of material and financial resources, purchasing or organizing new enterprises, reducing the level of distribution costs due to an increase in total production volume, diversification due to the development of previously unexplored areas of business activity, and much more.
The main subjects of investment activity in modern economic conditions are legal entities, which include:
· business partnerships and societies;
· joint stock companies;
· production cooperatives;
· state and municipal
· unitary enterprises; non-profit organizations.
The organization of investment processes and the conditions for their occurrence largely depend on the organizational and legal form of the investor. Based on the form of ownership, investors are distinguished as private, state, foreign and joint.
In modern conditions, a large role is given to public investments, which are carried out by federal, regional and local authorities at the expense of budgets at the appropriate level, extra-budgetary funds, and borrowed funds.
It is also worth noting that today there are several different types of investments:
Financial investments, which involve the process of investing capital in bonds, shares and other securities.
Real investments, which represent additional investments in the fixed capital of an enterprise, aimed at increasing the production and material reserves of the enterprise itself.
Gross investments, which are the total investments required to increase and replace the fixed capital of an enterprise.
Net investment, presented as gross investment without taking into account depreciation amounts in fixed assets.
The main directions of the enterprise's investment policy.
There are several main areas of capital investment in enterprises.
1. Investments aimed at increasing the efficiency of the enterprise. The purpose of these investments is to create conditions for reducing enterprise costs by replacing outdated equipment, retraining personnel or moving production facilities to regions with more favorable production and sales conditions.
2. Investments in production expansion. The purpose of such investments is to expand the volume of production of goods and services for established markets within the framework of existing production facilities.
3. Investments in the creation of new production facilities. These investments are intended to create completely new capacities and develop previously unused technologies for the production of goods and services.
4. Investments to meet the requirements of government authorities, for example, achieving compliance of the enterprise's activities with new environmental standards, safety standards or product quality.
1. Investments and investment activities of the enterprise.
2.Classification of investments.
3. Indicators of the efficiency of the enterprise's investment activities.
4. Innovations and innovative activities of the enterprise.
1. Capital is one of economic resources(factors of production) . It includes means of production - machines, equipment, tools, enterprise vehicles, buildings, structures, transmission devices, raw materials, stocks of goods and semi-finished products at various stages of production ( physical capital), as well as the knowledge and skills of enterprise personnel obtained through education and practical experience ( human capital ).The process of accumulating and adding capital to an enterprise is called investing.
Investments– all types of values invested in objects of entrepreneurial and other types of activity with the aim of generating profit (income) or achieving a positive social effect. Can be used as investment assets cash, bank deposits, shares, shares and other securities, loans, any property and property rights, intellectual values.
Investment activities represents an investment (investment) and a set of practical actions for the implementation of investments.
Subjects of investment activity– individuals and legal entities, the state, foreign entrepreneurs and organizations participating in investment activities as investors, customers and performers of work, suppliers, contractors, financial intermediaries, etc.
Objects of investment activity– directions for investing investment resources (newly created and modernized fixed assets, working capital, securities, targeted cash deposits, scientific and technical products and other property, property rights and intellectual property).
2. Investments can be classified according to various criteria.
1.By object of investment they distinguish
1.1. Real (capital-forming) investments– investments in tangible and intangible assets that provide an increase in the value of capital. These include: capital investments, innovative investments, investments in human capital. Capital investments include: costs of construction and installation work; costs of purchasing machinery and equipment; costs of design and survey activities; cost of capital works.
1.2. Financial investments– investments in various financial assets that provide the investor with income, but do not increase the total amount of capital in the economy.
2. According to the purpose of investment and acquired control, they are distinguished
2.1. Direct investments– investments in the authorized capital of a business entity in order to generate income and the rights to participate in the management of this entity.
2.2. Portfolio investment– investments in financial and non-financial assets in the process of forming an investment portfolio. An investment portfolio is a specially formed set of investment objects designed to achieve investment goals: high rates of capital or income growth, minimizing investment risks, ensuring sufficient liquidity of investment objects.
3. According to the nature of the subjects’ participation in investing, investments can be direct (immediate) and indirect (indirect, realized through financial intermediaries).
4. According to the investment period, investments are divided into short-term and long-term.
5. On a territorial basis, domestic and external (foreign) investments are distinguished.
6. According to the form of ownership, private, state and municipal, mixed, foreign and joint investments are distinguished.
Sources of investment financing are divided into internal and external. Internal sources are the enterprise’s own funds (profit, depreciation, etc.), external sources are borrowed funds (credits and loans, budget investments, equipment leasing) and attracted funds (issue of securities, foreign investments, funds from individual developers, etc.)
Investment methods– self-financing, corporatization, lending, leasing, selling, etc.
2. Investment policy of the enterprise– a set of management decisions that determine the goal, main directions and volumes of investment.
Investment project– a system of organizational, legal, settlement and financial documents necessary for carrying out investment activities.
Design analysis– analysis of the profitability of the project based on a comparison of the costs of its implementation and the benefits that will be received from it. Includes technical, commercial, institutional, social, environmental, financial, economic analysis.
The main indicators of the effectiveness of the investment project are its financial (commercial), budgetary and economic efficiency, taking into account the consequences of the project for its direct participants, for the budget and economy of the country (region).
Indicators of commercial efficiency of projects:
1. Net present value(NPV, NPV) – the difference between the amounts reduced to the present value cash flow(results minus costs) for the entire period of project implementation and the amount of investment for the same period.
3. Payback period (period) is the minimum time interval from which investments and other costs of the project are covered by the total results of its implementation.
4. Internal rate of return (IRR, IRR or i in) – the interest rate at which the value of the reduced cash flow will be equal to the reduced volume of invested funds.
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The project is effective if NPV> 0, R.I.> 1, IRR not less than the investor's required rate of return on capital.
Before assessing the effectiveness of a project, its social significance is determined by an expert, i.e. the possibility of its positive impact not only on the activities of its direct participants, but also on other economic entities, the population, and the economy of the region. Large-scale, national economic and global projects are considered socially significant.
Next, the assessment of the investment project is carried out in two stages: 1) indicators of the effectiveness of the project as a whole are calculated; 2) an assessment of the effectiveness of investments is carried out for each individual project participant.
3. Innovation is a complex process of creating, disseminating and using innovations (products, technologies, knowledge, management methods) to meet changing human needs.
Life cycle of innovation– the period of time from the origin of an idea, the creation and dissemination of an innovation to its use. These life cycle stages form the innovation process.
Innovative activity of the enterprise– a system of measures to use its scientific, scientific, technical and intellectual potential in order to obtain a new or improved product (service), a new method of their production to meet the demand and needs of society for innovations.
Innovation policy of the enterprise- an integral part of its general economic policy, which determines the goals of innovation activity and the means of achieving them, depending on the scientific and technical potential of the company, its market goals and competitive position. There are innovation policies of “technological push”, demand orientation, social orientation, and transformation of the economic structure.
Innovation strategies of companies can be divided into two classes:
– defensive strategies (response to demand, imitation of other people’s innovations, waiting);
– offensive strategies (active R&D, aggressive marketing, “mergers and acquisitions”).
Technical preparation of production– a complex of consistently linked design, technological, production and economic work on the creation, development and implementation of new equipment and technology. Includes design and technological preparation of production. In order to effectively organize work on technical preparation of production, a Unified system of technical preparation of production (USTPP), the components of which are unified systems design (ESKD) and technological documentation (ESTD).
