Achieving social effect as the goal of innovative investing

Abstract

The article focuses on the necessity of independent development and legislative institutionalization of innovative investment as a comprehensive institution of economic law aimed at providing legal order in the turnover of exclusive rights to use innovative products through investment in the economic activities of the recipient of these rights, with the purpose of obtaining investment returns by the investor through increasing the technological level of the recipient’s production activities and the competitiveness of relevant goods and services. Innovative activities are considered from the perspective of investments and achieving social impact.It is noted that innovative investment is predominantly of a commercial nature, aimed at obtaining profits from the realization of innovative products. However, the question of the expediency of carrying out innovative investment for the purpose of achieving social impact is also considered. Innovative investment that seeks to implement scientific and technological achievements with long payback periods, but without direct profit, is investigated. To this end, the legal category of “social impact” is explored, its essence is defined, and problems of legislative definition are identified.It s emphasized that non-commercial innovative investment requires separate legislative regulation, as it differs from commercial investment in its nature and goals. Non-commercial innovative investment may be undertaken for the purpose of achieving social impact, and therefore, the adoption of a separate “Law on Investment for Social Impact” is proposed, which would provide an appropriate legal foundation and promote the development of innovative projects in the country.Equally important is the study and consideration of foreign experience in carrying out non-commercial investment, but with due regard to the national economic situation of the state, so that the adopted provisions can be effectively applied in the specified relationships and not have a purely declarative nature.