Forming Strategy of Innovative and Technology Development for Manufacturing Facility

Abstract

It is demonstrated that technology upgrade at the existing manufacturing facilities can provide a simultaneous growth in the indicators of material productivity, capital productivity ratio and labor efficiency only under certain conditions. One can fulfill these conditions using the investment and innovative economic analysis of the production system activity. The authors formulate its nature and suggest a mechanism of its application for forming a strategy of innovative and technology development for a manufacturing facility. Note that any new technology for product release, introduced into the production process, should provide for the reaching the set target values of material and capital productivity, which should be taken into account during the development of the business-plan of the investment project on the introduction of technological innovations. A correspondingly developed procedure for estimating whether it is possible to reach the set target values is based on the calculation of a necessary volume of investments and reaching the financial sustainability by the companies. To compare possible options of the technological production upgrade and select the best one, the authors suggest a mechanism of “building” the values for the components of future company expenses and the calculation of the expected profit for each technological development scenario. This will also allow maximizing a future cost of the companies.