Innovation project and main risks

Innovation projects and risks ?onnected with applying of innovation project : 

Innovation projects and risks ?onnected with applying of innovation project Prepared by Sitenko Anastasiya

Agenda : 

Agenda Definition of Innovative project Main steps of the creating and achievement an innovation project Classification of innovative projects Effectiveness of innovative project Methods of selection an innovative project Examination of innovative projects

Innovation project : 

Innovation project Affair, activity, arrangement that means a complex of actions that provide attainment of some purposes; System of organizational, legislative, accounting and financial documents that are needed to reach some aims Process of innovation activity’s implementation

The main stages of IP : 

The main stages of IP Study Analysis Pre-project Selection and agreement of place Ecological basing Examination Preliminary investment decision

In an IP can be used next forms of investments: : 

In an IP can be used next forms of investments: Currency specifics and their equivalent Land Buildings, erections, machines and equipment, measuring and test specifics, another property that can be used in production Property rights, that are evaluated inamonetary equivalent

The main origins of investments : 

The main origins of investments Own financial assets, another kinds of assets Budget's assignments Foreign investments Different forms of loans

Classification of innovation projects : 

Classification of innovation projects By the subject and content structure and by the character of innovation activity: Research Scientific and technical That are connected with modernization and updating of production apparatus Projects of systematic updating of enterprise

Slide 8: 

By the level of solving: Governmental Regional In one branch On the enterprise By the character of purposes: Final Intermediate

Slide 9: 

By the period of realization: Long-term Medium-term Short-term By the type of innovation: New product New method of production New market New origin of resources New structure of management

Effectiveness of IP : 

Effectiveness of IP There’re next indicators IP’s effectiveness Commercial Budget National economic

Commercial effectiveness : 

Commercial effectiveness Defines as proportion of financial expenses and results that provide required norm of yield. Commercial effectiveness can be calculated to the project at all and to main members depending on their deposit’s share

Budget effectiveness : 

Budget effectiveness Indicators of budget effectiveness show the influence of the project’s results on the profit and expenses of appropriate (regional, state) budget. The main measurement of budget effectiveness is budget effect. Budget effect determines as profit’s excess of appropriate budget under the expenses

National economic indicators : 

National economic indicators Show the project’s effectiveness by the attitude to all nation economic and by the attitude to regions, branches and organizations When you calculate an indicator of national economic effectiveness you need: Final manufacturing results Social and economic results Direct financial results Credit and loans from foreign countries, banks and enterprises You also need to mention indirect financial results

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Don’t include in the calculation: Expenses of organization Amortization deductions of the main facilities, created by one members of project and used by another All kinds of organizations’ payments. Penalty and sanctions for non-fulfillment of ecological normative and sanitary norms are taken into account in the structure of national economic revenues only in that case if ecological consequences norm’s violation are not included in project’s results structure in the cost impression Percent by credits Revenues of foreign members

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When you calculate indicators of economic effectiveness on the regional level, you should include: Regional and ecological results Indirect financial results , that were received by enterprises and region’s population When you calculate economic effectiveness on the level of enterprise you should include: Production results Proceeds of made production’s realization

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The effectiveness evaluates proceedings from the next indicators: Value of project and the origins of financing Net present value Profitability Internal rate of return Period of investment’s recoupment Index of return

Methods of innovation project’s selection : 

Methods of innovation project’s selection The main methodic idea of selection is a step-by-step structurization analysis, valuation, orientation and concordance of members’ interest, who develop, produce and replicate innovations to the final economic result of their assimilation and using. The main consecution of the activities is next:

Step 1. Analysis of the activities sphere : 

Step 1. Analysis of the activities sphere Establishment of the “narrow places” Forming of problem situation Concretizing of the development’s problem Possible ways of finding a solution Finding of correspond new perspective objects

Step 2. Set of base perspective objects : 

Step 2. Set of base perspective objects Forming of base perspective objects’ set Forming of requirements and limit economic conditions of profitability in the process of their development and replication

Step 3. list of consumers’ qualities : 

Step 3. list of consumers’ qualities Forming of list Composition of native and foreign analogues Definition of order on the development and production of new object’s necessity

Step 4. Potential creator : 

Step 4. Potential creator Definition of potential creator Preparing and giving the list of analysis, features of consumer’s qualities, priority of consumer’s qualities from the receiving the most profit’s point of view

Step 5 : 

Step 5 Potential creator forms a list of indicators, that characterizes a technical level of perspective object. He generates the set of available variants, of it’s development and production. For each available variant determines an expected suit (vector) of consumers’ qualities, value of development and producing of innovation, the level of risk (probability of success final).

Step 6. : 

Step 6. Received creator’s variants and their valuations and their valuations are used to form valuation of comparative profit while replication of innovation, than preferable variant with the calculation of the biggest profit and risk’s factor is being chosen

Step 7. : 

Step 7. The low level of price is formed for the chosen variant, also coordinated conditions of profits’ redistribution between creator producer and consumer are formed

Step 8. : 

Step 8. Admissible revenue's valuations on the development of innovation are formed

Step 9. : 

Step 9. The received indicators and valuations are the base of signing a contract between creator and customer

Kinds of uncertainty and investment risks : 

Kinds of uncertainty and investment risks Political risk Foreign economic risk Incompleteness and inaccuracy of information Fluctuations of market conjuncture, prices, currency courses Uncertainty of climate, probability of natural disaster Producing and technological risk Uncertainty of purposes, interests and behaviour of members

Methods of innovation project selection : 

Methods of innovation project selection Method of pre discount income Method of yield index Method of internal yield norm Method of recoupment’s term Method of criteria list Markmethod

Examination of innovation project : 

Examination of innovation project Functions: Prediction by experts and specialists different indicators of project’s technological level, term of it realization, revenues, expected profit, volume of market, measure of demand, etc. Summarizing of received valuations with the help of theoretical, informal methods, on the base of which final decision reaches

Methods: : 

Methods: Technical analysis Commercial analysis Ecological analysis Organizational analysis Social analysis Financial analysis Economic analysis

Methods of risk management : 

Methods of risk management Hedging Financial engineering Pre-time buying of materials Changing of volumes and/or conditions of loans Reserving of funds

Level of risk : 

Level of risk Permissible Critical Disastrous

Thank you for your attention!? : 

Thank you for your attention!?