IDENTIFICATION OF INVESTMENT AREAS FOR INNOVATION ENTERPRISE ACTIVITIES AS REGIONAL DEVELOPMENT FACTOR

Innovation activities involve uncertainty and risks; therefore, a variety of investment sources, flexibility and adaptability of innovation processes are important principles of innovation financing. Financial support for an innovation project at all stages of its life cycle decreases market rejection risks and enhances its efficiency. An optimum combination of investment sources and forms has to be selected; their advantages and disadvantages have to be identified. An innovation function of investment is its most important function. Investment helps upgrade fixed assets using research and development achievements for producing new or improved competitive products and developing new or modified efficient technology. Innovation activities are a basis for investment activities. Without innovation, capital investment is inefficient and products are noncompetitive. Investment in regional innovation active enterprises requires identification of those ones which need for investment resources most of all. Priority areas of innovation active enterprises and features of regional development should be taken into account. In this respect, complex resource assessment for businesses engaging in innovation activities is required. To identify priority investment areas, a certain algorithm should be developed. Specific innovation areas should be determined based on a list of priority modernization and development areas of the country and its regions. A multiplier effect is taken into account as well. According to the effect, those objects should be financed whose development can create maximum demand for products of other industries. (c) 2018 Published by Future Academy www.FutureAcademy.org.UK