Methodological aspects of evaluating the efficiency of innovation projects
Journal Title: Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu - Year 2018, Vol 2, Issue
Abstract
The study argues that since the growth of an enterprise is driven by innovation and investment, investment and innovation projects should be evaluated with the same criteria of efficiency as an enterprise itself. For owners and managers of commercial enterprises, the main criterion is maximization of the business value and, accordingly, achievement of the desired economic goals. In fact, any activity that maximizes shareholders’ profits can be recognized efficient. Based on the thorough analysis of the essential characteristics of estimating investment and innovation, some suggestions are made on the improvement of methodological tools for evaluating the efficiency of innovation and investment activities. It is emphasized that evaluating the efficiency of innovation activities at the enterprise level should take full account of the target and integrated approach to the concept of “efficiency”. This means that, in addition to the indicators that characterize the economic return of investments in innovation, it is necessary: to assess the achievement of project goals in science and technology, social, financial, resource, marketing, and ecological spheres; to combine quantitative and qualitative assessment; to take into account the goals of all participants of innovation projects. It is stressed that evaluating the efficiency of innovation activities has to be systematic, and should be performed at certain intervals of its life cycle, due to the long-term nature of innovation processes that are accompanied by a high level of risk and uncertainty. Based on generalization of research and theoretical approaches to the concept of project management, it is concluded that an efficient project is one that meets certain resource constraints. In this regard, an integral part of evaluating the efficiency of innovation project is the assessment of its compliance with the budget and its temporary restrictions, taking into account the adjustments made during its implementation. The paper claims that efficient innovation activities cannot be characterized by the values of one sphere, for instance, financial, managerial or economic. It is worth including complementary indicators, which should be specific for a certain stage of innovation activity. It is found that developing a methodology for evaluating the efficiency of innovation activities is complicated by: the absence of any specific recommendations for evaluating the efficiency of innovation activities; structural uncertainty in the efficiency of innovation activity; the lack of information necessary for external evaluation by investors.
Authors and Affiliations
Yaroslav Paraniuk
Keywords
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