Investments In Innovative Projects Research Articles

Does short selling affect the investment of Chinese firms? An external financing perspective

ABSTRACT The objective of this paper is to explore the effect of short selling on firm investment from the perspective of external financing. We find that short selling makes it more difficult for firms to finance investment projects with external funds, and firms react to this exogenous shock by reducing their investment. The effect is more obvious in firms with lower stock price synchronicity, more investment in innovation projects and more severe internal financing constraints. Moreover, we find that after removing short selling constraints, the value-added effect of firm investment on firm value is enhanced.

ОСНОВНІ ПРИНЦИПИ АКТИВІЗАЦІЇ ІННОВАЦІЙНОЇ ДІЯЛЬНОСТІ ПІДПРИЄМСТВА

The article considers the basic principles of activating the innovative activity of the enterprise. It is noted that innovation is the most important means of structural changes in production, ensuring the competitiveness of products and providing conditions for modern enterprises to enter the foreign market. Incomplete use of own domestic investment sources and reasons of socio-economic, legal and political nature necessitate the intensification of innovative activities of enterprises. The essence of the management of innovation processes at the enterprise is that in the modern market the enterprise can be positioned only with a high level of technical or qualitative characteristics of products. In addition, the economic essence of innovation is manifested in the unity of all its components, properties, internal processes, relationships, contradictions, trends and is a set of economic, financial, commercial and organizational measures taken by participants in the innovation and investment process to finding the necessary investment resources, rational formation of their structure and selection of the most effective objects for investment. The effective implementation of innovations in the enterprise depends on the available resource potential of the enterprise and the efficiency of its use. It is noted that the innovation and investment activities of the enterprise is a purposeful process of implementing a set of measures to obtain the appropriate effect, requiring justification of investment, search and selection of investment resources aimed at using research, innovation, fundamentally new products for further implementation. domestic and foreign markets. The intensification of innovative activities will provide the company with technological changes that determine scientific and technological progress, improve product quality, its competitiveness and enable access to the international market with manufactured products. It is argued that the implementation of the basic principles of innovation in a modern enterprise will introduce an investment and innovation management system, based on the actions of levers, expressed in the organization, planning and promotion of efficient use of investment resources and their successful investment in innovation projects to achieve effect.

Механізм активізації готовності до сприйняття інновацій в Україні

The basic directions of innovative development in formation of the Industry 4.0 have been analyzed. It has been given reason that readiness for innovations perception becomes the basic indicator which will define new positioning of national economic systems in the world labour division in a global cycle change. Preconditions have been formulated and the basic stages of the state mechanism of activation of readiness for innovations perception in Ukraine have been defined. We propose the mechanism of activation of readiness for innovations perception, which is implemented in the short-term and long-term scenarios. The first option guarantees investments in innovative projects in the “here and now” mode, and the second one is aimed at the long-term formation of an institutional environment that supports the innovative activity of economic agents. The short-term scenario of implementing the mechanism of activation of readiness for innovations perception includes the following steps: probe of current conditions, laying the groundwork, project implementation. The long-term scenario of implementing the mechanism of activation of readiness for innovations perception includes the use of a conceptual and methodological basis aimed at transforming informal institutions in order to create a new identity of economic agents and ways of their interaction that support innovative activity.

A model of network portfolio investment in innovative projects of the regional economic system of petrochemical industry cluster

A model of network portfolio investment in innovative projects of the regional economic system of petrochemical industry cluster

Institutional factors of infrastructure provision of innovative development of Ukrainian agrarian sector

The current state and trends of the agrarian sector of Ukraine's economy, as well as the institutional conditionality of innovation processes, determine the need for substantiation of the institutional mechanism of the infrastructure support of innovative development in the context of the implementation of the state innovation policy. The purpose of the article is to substantiate theoretical and methodical principles of formation of an effective institutional system of infrastructure support for innovative development of the agrarian sector of the Ukrainian economy. The main tasks of the study include: the disclosure of the prerequisites for the institutional conditionality of innovation processes; research on the establishment of regulatory rules of political economic and legal institutions; definition of directions of institutional manifestation in the innovative development of the agrarian sector of the Ukrainian economy. The article explores the problem of institutional factors of providing the innovative development on the basis of system approach and synthesis of mechanisms of infrastructure support of innovation development. The issues of influence of institutional factors on the level of economic growth through political, economic and legal institutions are considered. The directions of institutional manifestation in the innovative development of the agrarian sector are revealed. It is proved that the formation of the effective institutional system of infrastructure support for innovation development is due to the need of giving the impetus to the economic growth of the agricultural sector in Ukraine. It is determined that political and legal institutes create regulatory mechanisms and form the preconditions for the implementation of an innovative type of development of the agrarian sector. The author considers that on the basis of development institutes the strategic development of the national economy of the state should be created, and it should be done through infrastructure design aimed at ensuring effective innovation development and can be examined at the macro, meso and micro levels. Accordingly, the main direction of stimulating the development of innovation infrastructure should be the complex and systematic improvement of the institutional environment to ensure the continuous flow of innovation process. Institutional impact on the innovative development of the agrarian sector is manifested through: the formation of institutional infrastructure; increase and focus on the innovative development of budget and extrabudgetary funds; stimulating the participation of commercial banks to invest in innovation, creating mechanisms for risk insurance of investment in innovative projects; the creation of conditions for innovative entrepreneurship; improvement of the system of legal protection of intellectual property and commercialization of objects; the intensification of activity of informational consultative structures and others.

The simulation of optimal financing of the investment projects portfolio based on the mechanism of minimum optimum deviations

The article deals with the problem of planning the distribution of investments in innovative projects. The dynamic analysis of efficiency of projects of OJSC "MegaFon" for 2013-2016 by regression analysis of the resulting profit function of projects from investment, which calculated the potential profitability of projects to determine the actual allocation of investments. On the basis of the mechanism of minimum deviations of Optima, the method of optimal allocation of investment resources between projects is developed. With the optimal distribution of investments, the values of the potential profit of each project are calculated, the increase in the profit for each project every year confirms the effectiveness of the mechanism.

КОНЦЕПТУАЛЬНІ ПІДХОДИ ДО ОЦІНКИ ЕФЕКТИВНОСТІ ІННОВАЦІЙНИХ ПРОЕКТІВ ЗАЛІЗНИЧНОГО ТРАНСПОРТУ

Currently, the issues of innovation development are the objects of attention, both at the level of state regulation, and at the level of individual enterprises. One of the methods of increase of innovative activity is the financing of innovation. Investments in innovative projects determine the degree of development, and in consequence of the success of the structures at different levels. Naturally, it is impossible to completely commercialize all innovation projects. In this regard, increased responsibility in the adoption of competent management decisions on the effectiveness and selection of innovative projects based on the methodological principles and evaluation criteria of the projects selected subject to assessment. In contrast to investment, to innovation projects, specific risks and uncertainties due to technological backwardness and market novelty of innovation. Therefore there is a need for new approaches to the assessment of the effectiveness of any innovation project.The article is devoted to approaches to evaluation of efficiency of innovative projects. The evaluation results are the basis for making management decisions about the implementation of the project, both at the level of state power, and at the level of the entity. The article notes the relevance of innovative design, including the introduction of innovative projects at the enterprises of railway transport. The results of theoretical investigation of the essence of the innovative project. Identifies the General features and characteristics of the essence of the innovation project, such as deadlines, performers, etc. are Marked features causing the efficiency of the innovative project. Factors that determine the conditions for decision-making on project implementation. A review of approaches and methods of economic estimation of efficiency of innovative projects and compare methods such as static, dynamic and special. The comparison describes their advantages and disadvantages regarding the application of the innovative project. The advantage of application of a method of evaluation of the effectiveness of advocates simplicity and ease of calculations. When assessing the effectiveness of various methods vary depending on the indicators and criteria of effectiveness of these indicators of efficiency of the innovative project. Each indicator is given a short characteristic. Highlights specific features that contribute to the future development of the innovation project. The conclusion is formulated about the lack of research results concerning approaches to the evaluation of efficiency of the innovative project, and the need for further research.

Analysis of Quantitative Methods of Risk Assessment and Selection of Optimal Method Using Venture Investment in Innovative Projects in Construction

Abstract One of the main factors that constrains using of venture investment in innovative projects in the field of construction is high risk of this type of investment. Thus, the problem of risk assessment is relevant in the venture investment of innovative projects. First of all, it should be noted that the risks in the construction industry have considerable specificity and heterogeneity. Real options approach is an important tool with venture investment at all stages. It can be widely used in innovative projects in construction for accurate risk assessment.

Using Real Options for the Evaluation of Venture Projects

This paper considers the peculiarities of the application of the real options method for assessing the economic efficiency of venture investments in innovative projects from the venture fund’s position. The results of the practical use of the author’s approach for the evaluation of venture investments with real options are analyzed. The paper shows the applicability of the real options concept to the valuation of the effectiveness of venture capital investments. The use of the real options method raises the accuracy of the estimation and enhances the instruments of the venture fund in evaluating the economic efficiency of innovative projects.

Green Financing: Role of Public Sector Banks

Green financing is one of the innovative financial tools which promotes and tries to improve the ecological balance with the economic growth of the country especially for a country like India. With the rise of industrialization at local as well as at global level, the biggest challenge is to protect environment. The drastic challenges in global financial markets and its impact on domestic market have resulted in several measures to mitigate the carbon pollutant elements. Companies are coming up with new practices focusing on environmental friendly projects and investment. They are researching and finding alternative sources of energy like wind, solar, bio-fuel, biomass and waste. These energy efficient technologies and other emerging energy options are attracting investment which was difficult earlier. Green financing is one of the key drivers which can stimulate the entire global market, a sustainable market in the long run. This has led both the public and private market players to come up with new practices and financing huge investment in innovative projects to reduce global warming. The natural systems and resources are being depleted, degraded and impaired at a rapid pace. These unnatural changes are creating undesirable changes in our climate, threatening the existence of our society.

Valuation of Compound Real Options for Investments in Innovative Projects in Pharmaceutical Industry

Abstract The paper puts forward a methodological approach to the evaluation of the effectiveness of venture capital investments in innovative projects in pharmaceutical industry using real options method. The proposed approach is tested on the real innovative project with venture financing in the pharmaceutical industry. The paper concludes that the value of the compound real option increases the overall value of the innovative project due to the factor of staged investment and a possibility to stop financing. The efficiency of using real options method when applied to the evaluation of the effectiveness of innovative projects by a venture investor is shown

Betting on Exports: Trade and Endogenous Heterogeneity

We study the equilibrium determinants of firm-level heterogeneity in a model in which firms can affect the variance of their productivity draws at the entry stage and explore the implications in closed and open economy. By allowing firms to choose the size of their investment in innovation projects of unknown quality, the model yields a Pareto distribution for productivity with a shape parameter that depends on industry-level characteristics. A novel result is that export opportunities, by increasing the payoffs in the tail, induce firms to invest in bigger projects with more spread-out outcomes. Moreover, when more productive firms also pay higher wages, trade amplifies wage dispersion by making all firms more unequal. These results are consistent with new evidence on how firm-level heterogeneity and wage dispersion vary in a panel of U.S. industries. Finally, we use patent data across U.S. states and over time to provide evidence in support of a specific mechanism of the model, namely, that export opportunities increase firm heterogeneity by fostering innovation.

Políticas para el Desarrollo de Sistemas de Innovación en México

In 2011, the Mexico-State Council of Science and Technology in alliance with the Inter-American Development Bank and the National Council of Science and Technology implemented a program to promote collaborative networks among firms for improving competitiveness trough innovations. Target firms belong to priority manufacturing and services sectors This paper deals with the analysis of the program, State of Mexico’s innovation capacities are described, the institutional framework and the main actors are also analyzed. The results show that SMEs had lack of experience in innovation but they increased their investment in innovation projects. Based on that analysis we conclude that success of innovation policies is highly dependent on previous experience and learning abilities of firms. Finally, we draw some recommendations for building capacities at the firm level as well as for strengthening innovation policies aimed at involving and technically upgrading SMEs

Financing Constraints for Industrial Innovation: What do We Know?

This article provides an overview of the most important insights from economic literature on private investment into research and development activity and how it may be constrained by market failure. The focus is on implications from empirical studies for the identification of financially constrained firms with respect to their innovative activities. The empirical evidence for incentive and financing problems for private sector investment in innovation projects has provided ground for governmental interventions to prevent welfare reducing underinvestment in innovation. However, the survey of the literature shows that designing efficient policy schemes is not straightforward as government funds are scarce, and the impact of financial constraints on investment may differ substantially across firms, types of R&D projects and the organization of financial markets in different countries.

Financing Constraints for Industrial Innovation: What Do We Know?

This article provides an overview of the most important insights from economic literature on private investment into research and development activity and how it may be constrained by market failure. The focus is on implications from empirical studies for the identification of financially constrained firms with respect to their innovative activities. The empirical evidence for incentive and financing problems for private sector investment in innovation projects has provided ground for governmental interventions to prevent welfare reducing underinvestment in innovation. However, the survey of the literature shows that designing efficient policy schemes is not straightforward because government funds are scarce, and the impact of financial constraints on investment may differ substantially across firms, types of R&D projects and the organization of financial markets in different countries.

Globalization, national innovation systems and response of public policy

This paper attempts to set the significance of public innovation policies in contemporary developing countries in the context of the fast pace of globalization. It is fairly well established both in theory and practice that investment expenditure on innovation projects is likely to be low if left in the hands of private economic agents as they have a tendency to under-invest due to the ‘public good’ nature of the outcomes of R&D. However, policy in developing economies seldom takes seriously the importance of investment in innovation projects. This has not been without far-reaching implications for the growth and development performance of developing countries in general. The paper explores the role of international institutions and national governments in the task of strengthening national innovation systems through innovative interventions at national and international levels.