Abstract
In order to assess and parameterize the risk of innovation activity implemented by innovation clusters, it is necessary to determine the reliable tools of measuring of systemic risk. Purpose – to propose an adequate approach to evaluate the systemic risk with regard to the impact of interlinkages between cluster entities and other external factors. Research methodology – general overview of research papers and documents presenting concepts and methodologies of evaluation of systemic risk and performance of networked structures as approach to evaluate the systemic risk with regard to the impact of interlinkages between cluster entities and other external factors, applied research. Findings – it is suggested to develop the further parameterization of intensity. Modelling of the tail dependence and asymmetric dependence between pairs of networked positions remains an important task. Research limitations – the lack of information concerning the structure and types of interactions and relationship between the members of innovation cluster. There are made some additional assumptions related to reduced-form approach of credit risk modelling. Practical implications – proposed conceptual model of evaluation of systemic risk should be useful for understanding and further treatment of measuring risk in a case of innovation management. Originality/Value – the concept of the measuring the systemic risk in innovation cluster as a joint probability of correlated failure of commercialization of innovative activity results is proposed and analysed in this paper.
Highlights
The innovation cluster is an entity that unifies different entities to achieve the same goal – usually successful commercialization of innovations
The networked structure of innovation cluster implies that dependence between failures is caused by direct and non-direct economic relations between business entities that can lead to cascade of defaults
In the first part of the paper, the concept of failure of commercialization of innovation performed by innovation cluster is established, in the second part, the general approach based on copula techniques to describe the joint probability of failure of innovative activity is introduced
Summary
The innovation cluster is an entity that unifies different entities to achieve the same goal – usually successful commercialization of innovations. A major cause of innovation risk and cluster risk management is the unusually high uncertainty and occurrence of many failures of different business entities, a risk which is linked to the structure of networking and the dependence between failures. The channels of contagion within networked structure create and maintain systemic risk, meaning the danger that an initial shock can be amplified and spread when innovation cluster entities react and further transfer it to other entities within the cluster, so that the total effect proliferates largely from the initial default or another unfavorable shock. The networked structure of innovation cluster implies that dependence between failures is caused by direct and non-direct economic relations between business entities that can lead to cascade of defaults. In the first part of the paper, the concept of failure of commercialization of innovation performed by innovation cluster is established, in the second part, the general approach based on copula techniques to describe the joint probability of failure of innovative activity is introduced
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