Theme 10. Examination of innovative projects

1. Principles and methods of evaluating the effectiveness of business activities.

2. Analysis of production and economic activity.

3. Analysis of financial and economic activity of the enterprise.

4. Analysis of the competitive success of entrepreneurial activity.

To assess the innovative activity of the organization and its innovation competitiveness in domestic and foreign practice widely used indicators of the innovation activities of the organization

Indicators, the most widely used in domestic and foreign practice and characterize innovative activity organization, its innovative competitiveness, can be divided into the following groups: expensive; time; renewability; structural.

Spending figures:

Indicators that characterize the dynamics of the innovation process:

Indicators are renewed:

Structural indicators:

The most commonly used indicators that reflect the firm's unit costs for research and development in the volume of its sales and the number of scientific and technical units.

7.2. Basic methods of examination of innovative projects.

Problem of examination is to assess the scientific and technical level of the project, the possibilities of its implementation and effectiveness. Based on the examination shall take a decision on the appropriateness and level of funding.

There are three main methods for the examination of innovative projects:

- Descriptive method is widespread in many countries. Its essence lies in the fact that we are considering the potential impact of the results of their projects at the situation in a particular market for goods and services. The results obtained are summarized, and the forecasts are taken into account secondary processes. The main drawback of this method is that it does not allow to correctly compare two or more alternatives.

- The method of comparison of the provisions "before" and "after" allows you to take into account not only quantitative but also qualitative indicators of the various projects. However, this method is characterized by a high probability of a subjective interpretation of the information and forecasts.

- Comparative assessment is to compare the situation of enterprises and organizations that receive public funding and are not receiving it. This method draws attention to the comparability of the potential impact of the project, which is one of the requirements check the economic feasibility of specific solutions for financing short-term, fast projects.

Examination should provide a choice of high-quality innovative project. Submitted investors innovative projects should be comparable and be analyzed using a single scorecard. This means that the information base, and the accuracy of methods for determining the value and physical parameters on the options should be comparable.

7.3. Evaluating the effectiveness of innovative projects.

At the heart of the project approach to innovation and investment activities of the enterprise based on the principle of cash flows (cash flow). Feature is its forward-looking and long-term, so in approach to the analysis takes into account the time factor and the risk factor. The efficiency is determined by the Guidelines on evaluation of the effectiveness of innovative projects and their selection for funding.

The main performance indicators of the innovative project Guidelines set:

• financial (commercial) efficiency, which takes into account the financial implications for the project participants;

• the effectiveness of the budget, taking into account the financial implications for the budgets of all levels;

• national economic cost-effectiveness, taking into account the costs and benefits that go beyond the direct financial interests of the participants of the project and allow for value.

Of course, should take into account the costs and the results that can not be the valuation (social, political, environmental, etc..).

Guidelines for project evaluation and selection for financing, method of UNIDO and other domestic and foreign work to assess the effectiveness of the projects offer many used for this purpose methods. All methods of assessing the effectiveness of the project are divided into two groups based on discounted and accounting estimates.

The choice of method is determined by the timing of the project, the size of the investment, the availability of alternative projects and other factors.

In world practice, most often to assess the effectiveness of the projects use the methods of evaluating the effectiveness of the project, based on discounted estimates, since they are much more accurate because they take into account the different types of inflation, interest rate, rate of return, etc. These indicators include profitability index method, the method of the net present value method, internal rate of return and payback period of the current method.

Net Present Value (NPV) is the amount equal to the difference between the results and the costs for the billing period, reduced to one, usually the initial, year, ie with discounting outcomes and costs. Recall that with the passage of time under the influence of inflation and competition changes the real purchasing power of money: for both the investor and innovator for "today" and "tomorrow" money is not equivalent.

  "The method of profitability index» (PI)

This method allows the ranking of the different projects in order of decreasing profitability.

Profitability Index (PI) is the ratio of present value (PVR) to a given innovation expenditures (PVK) - the same values ​​that we used for the net present value (NPV).

In other words, here comparing two parts of the flow of payments: the revenue and investment. In fact, the profitability index indicates the amount of income received by each ruble of investment. From this we see that the project will be effective in the value of the index of profitability, exceeding 1.

Internal rate of return method »(IRR)

Internal rate of return (IRR) is that discount rate (E), in which the total value of the discounted revenues (PVR) equal to the total discounted value of capital investments (PVK).

Overseas payment rate of return is often used as a first step of quantitative investment analysis and selected for further evaluation those innovative projects, internal rate of return which is estimated to be not less than 15-20%.

Payback Period (PP)

Payback Period (PP) is one of the most common indicators to measure the effectiveness of investments. It is a time interval beyond which the net present value (NPV) becomes a positive value, ie payback is achieved in the period when the present value of the accumulated positive becomes negative present value of all investments.

7.4. Evaluating the effectiveness of innovation.

Innovative activities - to bring scientific and technical ideas, inventions, developments to result suitable for practical use. A full range of innovation includes all activities in the design, development and production, as well as the implementation of innovations.

Implementation of innovation, as well as any other activity is always associated with a variety of internal and external costs. Therefore, to determine the cost-effectiveness of innovation, it is necessary to evaluate the cost-effectiveness of it.

It is necessary to distinguish between the cost effectiveness of innovation producers (sellers) and buyers.

The main criterion of economic efficiency rationale innovation producers (sellers) is the result: net present value, which is determined by comparing the costs incurred and the results obtained is taken as the basis for all subsequent studies the cost-effectiveness of a particular innovative project. Besides the economic efficiency of innovation includes the determination and we have considered other factors: profitability index, payback period of capital costs and internal rate of return of the project. Completed evaluation of the definition of stability and sensitivity of the basic economic characteristics of the project to changes in internal and external parameters.

Economic efficiency and innovation in the buyers should be considered from a different angle. The buyer acquiring innovations, improving its logistical base, technology, production and management. It bears the costs associated with the purchase of innovations, its transportation, development, and others.

Sustainability of the project will limit the negative value being analyzed, which preserves the economic feasibility of the project.

Sensitivity to a change in the index is also determined by analysis, when analyzed indicator is changed to 10% in the direction of the negative deviation.

Under market conditions, management is very important indicators such as the attractiveness of innovative projects, determines the strategy of the company, the innovator, the terms of attracting financial resources and their sources, dividend policy innovator. In addition, the validity of the projects exceed bank deposit rates, to which, as a rule, pay attention to investors.