Abstract
Investment and innovation have traditionally been seen as interconnected areas of activity. Clarifying this relationship in the business practice of Bulgarian companies is an interesting task, from a scientific and applied point of view. The intensity of innovation resulting from the dynamics of the global economy also implies pressure on companies to make more and more investments in new products, new technologies, new working methods and managements, etc. At the same time, not all innovative technologies and/or products are characterized by the necessary cost-effectiveness. This requires companies to apply appropriate methods for assessing the profitability of investments in innovation, as well as methods for assessing the risk of such investments. The purpose of this article is to investigate the practice of Bulgarian companies (based on a limited range of researched but completely randomly distributed) in applying approaches and methods for assessing the effectiveness of investments in innovation. To achieve the main objective, methods such as: literary review, observation, survey, two-dimensional statistical distribution, analysis and synthesis of primary information, comparative analysis, expert evaluation, etc. are used. In conclusion, some summaries of good practices and recommendations for increasing the effectiveness of these processes in the practice of companies are given.
Highlights
Investment and innovation have traditionally been seen as interconnected areas of activity
In order to assess the risk in innovation projects, it is necessary to develop them in many variations and when only one of their basic parameters is changed
It can be noted that the final answers, we are not satisfied and extremely satisfied, receive extremely low values – 1.5%. These results show that in general a large number of business organizations in Bulgaria are happy with investing in innovation, but most of them take into account the fact that there is something to improve in their work and to a significant extent
Summary
One of the main functions performed by each business organization are investment and innovation functions. Not all innovative technologies and/or products are characterized by the necessary cost-effectiveness (despite their high degree of novelty, their coefficient of useful activity does not allow them to derive economic effects). In order to assess the risk in innovation projects, it is necessary to develop them in many variations and when only one of their basic parameters is changed This is usually done in order to avoid a comprehensive combination of the different options in the use of the theory of combination. Another approach is to determine the realistic value and to do a positive or negative deviation from it
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