Economics/15.Government management of economy

Dr.sc.oec., Professor Khodos D.V., Ph.D. candidate Stepanova L.V.

Institute of Economics and Finance of Agribusiness industry FSBEI HPO «Krasnoyarsk state agrarian university», Russia

The essence, the role of innovation practice and innovation activities of enterprises

 

The present-day conditions of economy development presuppose the presence of necessary and sufficient conditions for innovation transformations. 

In most cases the prospective viability of this or that region is estimated by either general economic indicators, or by subjective criteria of a certain region that characterize potential capabilities of that region.  But the most essential condition of innovation development is the efficient management of this system. In recent years in Russia the foundation of presently-operating national innovation system has been laid and certain efforts to form and develop the structure of innovation development management have been made, which has also been selectively carried out in regions.

Along with this, the management of innovation development still remains the key problem for the innovations in regions. It is essential to elaborate the forms of innovation development management that will ensure the most efficient implementation of the programmes of innovation regional development.  

To successfully move in this direction it is important to use new forms of innovation development management that will make it possible to take into consideration theoretical maturity of the management system and to use specific natural and geographical, industrial and technological and scientific resources as launch environment for innovation transformations.  This is where the innovation potential can be fully used as a general indicator of economic development of the system.   The choice of forms of innovative development management directly depends on structural and volume indicators of innovation development of a region as well as on the possibility to make a long-term forecast of these indicators.

The peculiarity of innovation development management is the importance of considering both the results of current production periods and the regional wealth that has been accumulated during the previous stage of innovation activities. The theoretical and practical essence of the forms of innovation development management for regional economy is in the ability to reveal the efficiency indicators in the structure of regional and national economy.

The improvement of innovation policy has become the key task for the further development and intensification of economic processes conditioned by both current economic laws and their negative practice in regional business behavior [1].

Among those there is the change in balance between living labor and embodied labor caused by scientific-and-technological advance; the necessity to use wider potential of production resources that appears at the junction of such systems as “equipment-technology”, “equipment-information”, “technology-human being” due to narrowing resource base; the lowering levels of quality and use of real and human elements of innovation potential.; the disproportion of the development of equipment, technological and information production base. In such conditions the decline in the efficiency of the use of investment potential of a region increases “the price” that the society pays in the form of one-time investments and current expenditures for every per-cent of regional revenue growth, therefore weakening the economic base of technical and social progress [2].

According to the progremmes of innovation development, the responsibility and interest of regions in the formation of a congenial innovation climate increases.   

That is why one of the forms of management could be estimation criteria of innovation opportunities of a region as well as the parameters and characteristics of innovation potential. In other words, the management actions should be directed towards the efficient use of innovation potential – its size, structure, characteristics, load level and efficiency as an object of management.  .

The innovation potential of regional economic systems is characterized as a complex system of resources that are interconnected and interdependent. That is why in the process of planning and implementation it is important to use such system peculiarities of the potential as integrating qualities and interchangeability of its elements and well-balanced, appropriate correlation between them, which, first and foremost, opens up opportunities for the establishment of the economic system that will show maximum performance and efficiency. 

In the existing management methods marketing aspects of innovative activities are not taken into consideration.  With relation to management tool, for the development and implementation of innovations the following key points should be considered:

·                 Regional specialization in terms of development of certain directions of innovative activities. For example, when comparing a region which is ranked as “universal” in terms of amount of innovations with production systems that specialize in this direction, its development potential was easily determined;   

·                 Peculiarities of the offered innovation products, that, no doubt, influence the sales volume of the product as well as the market share in the region;

·                 Nomenclature and range of the offered innovation products in the analyzed direction of regional activities;

·                 List of unused distribution channels of innovative products in regions;

·                 Peculiarities of regional innovation product promotion.

If the abovementioned points are not considered, the forms of innovative activities management will remain just a tool of mathematics, but not a tool of efficient analysis and evaluation of the perspectives of regional innovation development, the analysis of opportunities and conditions for the successful development of innovative activities in the respective market segment.   

The specific form of management that can be used is the system of distribution of responsibilities among the management subjects in accordance with the management influence on the innovation development of a certain region. The principles of making alternative managerial decisions determine the choice and the type of managerial actions. These are the following principles:  the principle of coordination of actions of all subjects, the principle of budget effectiveness, the principle of commercial effectiveness and the principle of recoverability.

Such an approach will guarantee maximally favorable conditions for the distribution of responsibilities among the management subjects in the process of implementation of long-term and mid-term programmes of innovation development. The responsibilities are distributed on federal, regional and municipal levels.

As evaluation criteria of innovative development the following is offered: to introduce in all aspects the coefficients that show deviations of certain indicators of activities from average regional indicators of average volume of innovation products:  

,                                              (1)

where:  — is the total volume of innovation products in regions;

N — is the number of regions.

The innovation activity index   for every region can be calculated from the formula:

 ,                                                  (2)

 

Having the calculated indexes of innovation activities it is possible to calculate potentially feasible market share:

,                                              (3)

where: — is the potentially feasible market share with consideration of innovation activity;  

— is average market share per region that is calculated by division of total volume of a market by the number of regions that act on the market;

 — is the index of innovation activity.

The potential percent of regions that are on the market but have a zero index of innovation activity in terms of the given approach can be considered as equaling zero, which means that the management effect is minimal and the existing system of innovation development management cannot be evaluated as successful. 

 

 

 

List of reference

 

1.   Kozlov K.K. Innovation activity of Russian firms. / K.K. Kozlov, D.G. Sokolov, K.V. Yudaeva // The Economic journal. - 2004.-No 3.-p. 399-414.

2.    Kiseleva V.V., Kolosnitsyna M.G. State regulation of innovation sphere. Publishing house of State University — Higher School of Economics, 2008. – p. 402.

3.   Rogalyev N.D. Conceptual mechanism of stimulation of innovation processes.  / N.D. Rogalyeva, I.P. Lebedev, N.L. Khabalova// Innovations. - 2004. – No 3. - p. 26 - 31.

4.   Folomyev A.N., Revazov V.G. Innovation investment – St.Petersburg.: Nauka, 2001