Contents  Introduction  ch.1  ch.2  ch.3  ch.4  ch.5  Conclusion  Literature  App.1  App.2 

1. Innovations in the Russian economy.

Unfortunately commercial enterprises in Russia still have not appreciated all the advantages of innovative development. Only 5% of enterprises are innovative in modern Russia (comparing to 60-70% in the 80’s)[i]. Furthermore, this result is around 3% among small companies while small business is considered to be the basics of hi-tech production in developed countries[ii].

The lack of financial resources is reckoned to be the main obstacle for innovative activity of enterprises. According to conducted research 71% of enterprises point out this cause as a barrier for performing innovations[iii]. Obviously, there are some contradictions. Usually, Russian enterprises perceive R&D expenses as wasting money. Simultaneously Russian companies can gain $120-150 billion for export of high-tech production in the nearest future[iv]. Under such circumstances the problem of limited financial expenses on R&D ceases to be an insuperable obstacle and becomes just the question of priorities for enterprises.

Companies in Russia are not concerned with R&D investments as explained by extensive economy in general. Under the terms of a market economy investments become the means of raising company competitiveness. They remain important only under conditions of competition, which still plays small part among Russian enterprises. Until companies have ability to gain profit without R&D spending all the state measures of R&D, stimulation will be futile.

It would be incorrect to consider that unwillingness to perform innovations among Russian managers’ roots subconsciously. They simply react to outer business environment. This thesis can be illustrated by the results of one experiment[v]. A group of engineers and entrepreneurs-beginners was asked the question: «If you run your company, how important would innovations be for your company’s activity? » Most common answers were:

1.     Very important;

2.     Rather important but not crucial;

3.     Not very important;

4.     Of no importance.

The first variant was chosen by 10% of the questioned people while 90% evenly chose three last variants. Then the question was changed: «If you run General Motors or IBM, how important would innovations be for your company’s activity? » This time the first choice was chosen by 90% of the respondents.

Hopefully many of abovementioned obstacles for performing R&D in Russia will gradually vanish. Development of competition on the domestic market (partly as a result of joining WTO) will promote attention of Russian enterprises to innovations coinciding adoption of the world experience in this field. Innovations are worldwide considered the requisite of company’s successful development, though one peculiarity inheres in innovations. Innovations are coupled with high risk.

The risks of innovation projects are worth careful studying. Adequate application of modern financial management methods for planning costs and results of R&D is impossible without determination main groups of innovations risks, mechanism of their appearance and interaction.

Contents  Introduction  ch.1  ch.2  ch.3  ch.4  ch.5  Conclusion  Literature  App.1  App.2