INVESTMENTS IN THE DEVELOPMENT OF INNOVATIVE MANAGEMENT IN THE COMPANY

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INVESTMENTS IN THE DEVELOPMENT OF INNOVATIVE MANAGEMENT IN THE COMPANY

Journal Title: Baltic Journal of Economic Studies - Year 2018, Vol 4, Issue 4

Abstract

The subject of research. This article determines that in conditions of global transformational processes, the sphere of innovation activity becomes of particular importance in the economy of advanced countries. Its development provides socio-economic growth of local companies and a state, in general, requiring significant financial resources. Consequently, the subject of this study is the management of innovation activities at the enterprise with the achievement of maximum effectiveness, as well as the identification of interconnection between innovations and investments. Methodology. Conducted research shows, the condition of development of domestic technologies is unsatisfactory: Ukraine occupies the last place among European countries. Innovative activity is associated with investments, whose government support in our country is rather small in the context of the state’s GDP. Content analysis is carried out on materials of works of domestic and foreign scientists using information from Ukrainian legislation and statistical data provided by experts. In the process of preparing the paper, the following general scientific methods of research are used: logical analysis, observation, formalization, synthesis, abstraction. The purpose of a study is to analyse the nature of the innovation activity of companies, to establish its unbiased relationship with investment processes in order to identify areas for improving the innovation and investment situation in Ukraine. Important is to substantiate the expediency of improving the innovative management of Ukrainian enterprises in the focus of implementation of new projects by finding the necessary sources of financing. As a result – effective management of the company is capable of satisfying consumer demands and increase profits. Conclusions. Thus, the analysis of the relationship between innovations and investments has shown that the situation in Ukraine is characterized by a deficit of state support in the investment and innovation sector, and difficulties in attracting finance. The latter is directly related to the political situation, instability, the lack of clear legislative rules of direct action, as well as insignificant pay for the work of inventors. At the same time, the positive direction of innovation development in Ukraine is the tendency to increase venture companies (with the use of foreign experience), which directly provides investment in the latest local finds. Improving the investment and innovation situation in Ukraine is possible by creating a set of incentives for attracting investment, further investing in human capital, raising wages for researchers; growth of inflow of foreign investments; providing tangible state support to enterprises and more favourable lending conditions for them, etc. It is important to ensure transparency of legislation, to perfect the conditions of functioning of business space and the state of market infrastructure, to take measures to improve the state of the environment.

Authors and Affiliations

Natalia Germanjuk

Keywords

EP ID EP560916
DOI 10.30525/2256-0742/2018-4-4-87-92
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