Life cycle of the innovation process. Life cycle of innovations and innovation process. Innovation process. Stages

For each specific scientific work on the creation of a new product or new technology, you can use the concept of a life cycle, which determines the sequence of passage of an innovative project through individual stages and phases. They can be characterized by the characteristics of goals and objectives, the specifics of methods and means of achieving them, the organizational form and costs of their implementation, and the degree of uncertainty of the expected results.

Life cycle of innovation- a certain period of time during which an innovation is created, improved, used and sold on the market as a product, ensuring the achievement of the goals of the manufacturer (seller). The life cycle of an innovation differs from the life cycle of a product in terms of duration and number of phases. Unlike the product cycle, which is associated solely with its viability in the market, the life cycle of an innovation, in addition to market phases, also includes a phase of searching and selecting ideas for creating an innovation, a phase of developing an innovation, a phase of testing it through laboratory tests and market tests.

The costs and profits of the manufacturer (seller) at the stages of searching and selecting ideas (results of research activities) directly depend on the innovation cycle; development (adaptation of the results of research activities to practical use in a specific industry or company); checks for compliance with basic parameters of quality and competitiveness; promotion to sales markets; sales growth; saturation of the market with innovative products; decline in profit volume, sales and prices (sales at reduced prices). The life cycle of an innovation used by a manufacturer in its own production differs from the life cycle of an innovation produced for sale. For innovation in the form of a product, the life cycle occurs primarily in the pre-production, production, distribution and exchange phases of the reproduction process. Production innovation, acquired and created for the manufacturer's own needs, mainly ends in the production phase. In the first case, the innovation itself, when implemented, brings profit to the manufacturer (seller); in the second case, the innovation brings profit indirectly, through the goods produced with its help. The life cycle of innovation in the form of various products varies in duration (from several months to several years).

Each stage of the innovation life cycle is characterized by a specific combination of marketing activities that allow the manufacturer (seller) to implement strategic and tactical plans for market behavior. The planned profit from the implementation of an innovation during life cycle assessment is ensured primarily through sales volume (possibly with periodic price adjustments). The loss of market stability by an innovation and a decrease in profitability are usually associated with a decrease in the level of novelty, the supply of a new innovative product to the market by a competitor, or changes in demand for various reasons. But a decrease in profitability in one market can be offset by entering another or new market segment. The life cycle of complex systemic (primarily technical and technological) innovative products can be extended and, accordingly, the volume of profit of the manufacturer (seller) can be increased by continuing their production from the consumer through continuous service (paid or free) and increasing the price of consumption of this systemic innovation.

Innovation life cycles differ by type of innovation. These differences affect, first of all, the total duration of the cycle, the duration of each stage within the cycle, the peculiarities of the development of the cycle itself, and the different number of stages. The types and number of life cycle stages are determined by the characteristics of a particular innovation. However, for each innovation it is possible to determine the “core”, that is, the basic basis, of the life cycle with clearly defined stages.

The literature offers various options for classifying and defining the stages and stages of the life cycle of an innovative project as a process that occurs from the moment a new idea arises to the moment of its commercialization and practical implementation. The following gradation of innovation processes is proposed: the early stage - from the emergence of an idea to its technical development, the middle stage - from technical development to commercial development, and the final stage - to mass production. A number of publications use a more detailed classification of the early stage of the innovation process, dividing it into separate stages that characterize the content of scientific research and development - fundamental, exploratory, applied, etc. It should be noted that the differences in the classification of stages and stages are mainly of a terminological nature. Thus, scientific development includes four stages: research and development, development, serial or mass production and maintenance.

The main stages of the evolution of scientific knowledge: research – development – production.

The formation of a plan, preparation and gradual implementation of innovative changes is called the innovation process. It can be viewed from different perspectives and with varying degrees of detail:

· firstly, as a parallel-sequential implementation of scientific research, scientific and technical, production activities and innovations;

· secondly, as temporary stages of the innovation life cycle from the emergence of an idea to its development and implementation.

Innovation process- this is a set of works of innovation activity, which are regulated by the stages of their organization, resource provision from the emergence of a promising idea to the creation of new products, services, their commercialization in a competitive environment. This process does not end with the introduction of innovation; as it spreads in the economy, the innovation improves, becomes more efficient, acquires new consumer properties, which, in turn, opens up new areas of application for the innovation, new markets, and therefore new consumers (Table 1.8) .

Table 1.8. Factors influencing the development of innovation processes

Group of factors	Factors hindering innovation activities	Factors promoting innovation

Economic, technological	Lack of funds to finance innovative projects Weak material, scientific and technical base and outdated technology, lack of reserve capacity Dominance of interests of current production	Availability of a reserve of financial, material and technical resources, advanced technologies Availability of the necessary economic, scientific and technical infrastructure Material incentives for innovative activities

Political Legal	Restrictions from antimonopoly, tax, depreciation, patent and licensing legislation	Legislative measures (especially benefits) to encourage innovation State support for innovation
Organizational and managerial	Established organizational structure, excessive centralization, authoritarian management style, predominance of vertical information flows Departmental isolation, difficulty in intersectoral and interorganizational interactions Rigidity in planning Orientation towards established markets Orientation towards short-term payback Difficulty in coordinating the interests of participants in innovation processes	Flexibility of the organizational structure, democratic management style, predominance of horizontal information flows, self-planning, allowing for adjustments Decentralization, autonomy, formation of target problem groups
Social-psychological Cultural	Resistance to changes that can cause such consequences as a change in status, the need to look for a new job, restructuring of established ways of doing things, violating behavioral stereotypes, established traditions Fear of uncertainty, fear of punishment for failure Resistance to everything new that comes from outside	Moral encouragement, public recognition Providing opportunities for self-realization, liberation of creative work Normal psychological climate in the work team

Features of the innovation process:

1. Parallel and sequential implementation of scientific and technological activities, investment and marketing.

2. Changing phases of the product life cycle.

3. Availability of an investment project at the stages of financing research and development, distribution of new products and services, and their commercialization.

An important direction in the study of innovation processes is the identification of real factors that promote or hinder their implementation.

1. Creation of innovation – development of innovations (fundamental research, applied research, development of a prototype), as a result of which an innovative idea takes on a specific material form.

2. Commercialization of innovation - organizing the production of a new product and introducing innovation to the market, obtaining an economic effect and diffusion of innovation (large-scale dissemination of innovation into various sectors of the economy).

The concept of “innovation process” is broader than the concept of “innovation”, since innovation itself (innovation) is one of the components of the innovation process (Table 1.9).

Table 1 9. Main components of the innovation process

Innovation - a new idea, new knowledge	The result of completed scientific research (fundamental and applied), experimental design developments, and other scientific and technical achievements. New ideas can take the form of discoveries, rationalization proposals, concepts, techniques, instructions, etc.
Innovation/Innovation	The result of the introduction of new knowledge, its implementation in new or improved products sold on the market, or in a new or improved technological process used in practical activities
Diffusion of innovation	The process of disseminating an innovation that has already been mastered and implemented, i.e. application of innovative products, services, technologies in new places and conditions The form and speed of this process depend on the structure and power of communication channels, the ability of business entities to quickly respond to innovations

It is important to emphasize here that the result of scientific research - new knowledge, innovation - gives rise to the innovation process.

Innovation is a component of the innovation process that is the result of the implementation of new knowledge in the form of new or improved products accepted by the market or a new or improved technological process used in practical activities. Being the end result of creative work, realized in the form of a new product or technological process, innovation itself is a commodity. In other words, innovation is intellectual product, which largely determines the nature of the problems of managing innovation processes.

The nature of the third component of the innovation process - the diffusion of innovations - depends on the structure and power of communication channels, the ability of business entities to quickly respond to innovations, etc. Since diffusion includes everything involved in the process of disseminating, promoting and selling an innovation, it is sometimes mistakenly identified with the marketing of an innovation.

However, marketing is that part of the diffusion process over which the enterprise has control, for example, advertising, product promotion, and pricing. Another part of the diffusion process over which the enterprise has no control is diffusion, the promotion of an innovation by users and scientific publications, for example, a consumer telling a friend about the benefits of a product, a potential user inquiring about a new product, or a publication about an innovation in scientific work.

Thus, the innovation process is a sequential chain of events from a new idea to its implementation in a specific product, service or technology and the further dissemination of the innovation.

One of the fundamental issues concerning the dynamics of the innovation process is the reduction of the time interval - lag - between the emergence of new knowledge and its use, implementation, i.e. innovation. The speed of the innovation process is characterized by the indicator – innovation lag– the time interval from the moment the idea arises to the moment of return on investment (receiving a positive profit). The size of the lag characterizes the effectiveness of the innovation process: the faster a company monopolizes the market, the more time it takes to receive maximum profit, the accumulation of which will allow the implementation of subsequent innovations. The time during which a company maintains a monopoly on a new product is determined by the speed of response of competitors (Fig. 1.6).

In other words, there is often a significant time gap between the first two components of the innovation process - innovation and innovation, which slows down the innovation process as a whole.

As practice shows, the beginning of the innovation lag corresponds to the moment of the end of applied research and the beginning of experimental design development, and the end of the innovation lag corresponds to the moment of return on investment (Fig. 1.6).

Rice. 1.6. Structure of the innovation process:

1 – fundamental research; 2 – applied research; 3 – experimental design developments; 4 – architectural and construction work; 5 – technical preparation of production;
6 – industrial production

In Fig. Figure 1.6 shows the dotted line of the life cycle cycle, which is illustrated by a graph of sales volume and includes four stages: introduction, growth, stabilization and decline. The life cycle chart is the change in sales volume (vertical axis) over time (horizontal axis). In form, the graph contains three logistic curves: exponential rise (from the lowest level of an equilibrium steady state to the highest level), stabilization - a horizontal component, including the stages of maturity, saturation and decline (reverse process), i.e. two transition processes.

Currently, the speed of translating new knowledge into practical activities is very important, since the success of the entire innovation process depends on it. Therefore, effective innovation management involves overcoming barriers that cause delays in the practical implementation of new ideas, gaining and maintaining a competitive advantage as a result of quickly entering the market with innovative products and services.

At the first stage of the life cycle – implementation (removal) – the process of market emergence is realized (Fig. 1.6 – Fig. 1.8). The market's reaction to the product is established, and the innovator's natural monopoly on the product is realized.

The second stage of the life cycle is the acceleration of market growth (Fig. 1.6 – Fig. 1.8). The manufacturer of the product first becomes effective monopolist, makes a profit and compensates for its costs as an innovator, and then (in the second part of this stage) other producers join it and competition arises.

The third stage is a slowdown in the growth of the product market. Competition becomes fierce (stage turbulence). The second and third stages represent one general stage of growth (Fig. 1.6 - Fig. 1.8), which is a transition process from one stable state to another.

The fourth stage is the maturity (stabilization) of the market, its saturation with goods - this is an oligopolistic market in which there is fierce competition. Consumers put forward specific requirements for the product, and a period of active product differentiation begins. This may provoke the emergence of a monopolistic market again (Fig. 1.6 - Fig. 1.8).

The fifth stage - the decline (decline) of the product market - can be noticeable and smooth, or it can be a quick, rapid decline. This stage is divided into two parts: stagnation (certain activity is observed in the market) and collapse (Fig. 1.6 - Fig. 1.8).

At all stages of the life cycle, certain innovations are implemented (Fig. 1.6 – Fig. 1.8). The nascent stage of the market and the first half of the accelerated growth stage is the area in which the market is created by an innovator offering a new product or service to the market. This is the area of product innovation, the area of radical design innovation. The accelerated and decelerated growth stages are areas of product design improvement. At the stage of maturity and saturation, the process of cost reduction is constantly underway - this is the area of technological innovation when resource-saving technologies are introduced. During the recession stage, new products and new markets are introduced.

After reaching market maturity (in some cases after a stage of accelerated growth), individual consumers show dissatisfaction with standardization and present their special needs to manufacturers, therefore, in a zone of turbulence, product differentiation arises in response to new needs, and attention to positioning and branding increases. Then the product becomes complex and develops by increasing reliability and maintainability, quality in terms of convenience and satisfying emotional needs, which is satisfied through service (Fig. 1.7, 1.8).

Satisfying the five levels of consumer requirements for product quality involves improving:

· product due to its functional characteristics;

· quality by ensuring reliability and maintainability;

· quality by meeting the specific needs of the consumer - product differentiation (moving away from competition into a niche - a special segment);

· quality by satisfying the need for convenience, which is provided by the provision of new services;

· quality by satisfying emotions – new design, new style.

The innovation life cycle includes the life cycle of innovation, product and product. In Fig. 1.7, 1.8 presents the innovation life cycle, which consists of four parts:

1. The emergence of an innovative idea and an innovative project.

2. Creation of innovation.

3. Diffusion of innovation.

4. Consumption of innovation.

1. The origin of an innovative idea and an innovative project(Fig. 1.7, 1.8).

Basic research (FI) in all three varieties:

· theoretical research (TI);

· experimental research (EI);

· exploratory research (ER).

Study– scientific work, a type of scientific activity, scientific study and the process of cognition, the process of studying an object and obtaining new knowledge about it on this basis.

Basic Research- this is a theoretical or experimental activity aimed at obtaining new knowledge about the basic patterns and properties of social and natural phenomena, about the cause-and-effect relationships underlying phenomena and observed facts, without any, as a rule, specific purpose for their application or use .

Theoretical research includes research whose task is new discoveries, the creation of new theories and the substantiation of new concepts and ideas.

Experiment– a set of operations, influences and/or observations aimed at obtaining information about the object of study.

Exploratory research includes research whose task is to discover new principles for creating products and technologies, new, previously unknown properties of materials and their compounds, methods of analysis and synthesis. In exploratory research, the purpose of the intended work is usually known, but the directions are not specified. In the course of such research, theoretical proposals and ideas are confirmed, rejected or revised (the positive yield of fundamental research in world science is 5%).

The purpose of fundamental research for corporations and large companies is to accumulate knowledge and research experience in a field of interest. At this stage, a market assessment is not carried out, marketing plans are not drawn up, and the creative team is not organized. Research is mainly carried out in academic institutions and large scientific and technical industrial organizations by highly qualified scientific personnel. The main source of financing is state budget funds (on a non-repayable basis). The main stages of exploratory research work:

· analysis of existing scientific and technological developments;

· the emergence of an idea for a new method of solving current problems;

· justification and experimental verification of the new method.

This is where ideas for future innovative ventures come from. In corporations, FI is carried out within a special budget (approximately 10% of R&D costs).

Applied Research- original research undertaken to obtain knowledge and, as a rule, to achieve a specific practical goal or solution to a problem.

Applied original research is aimed at identifying ways of practical application of previously discovered phenomena and processes. At this stage, the scientific idea is transformed into a specific idea of a new technology or a new product, a new service: a specific way of implementing the scientific idea is determined; Experimental design development (R&D) is carried out in terms of developing a technical specification (TOR), which sets the task of developing a design and technology, creating an information image of a device, technology or service in the form of an experimental layout.

Applied research work aims to solve a technical problem, clarify unclear theoretical issues, obtain specific scientific results that will later be used in industrial production - strategic positioning of the company, an application for opportunities in this field of knowledge (Fig. 1.7, 1.8 ). The organizational design of an innovative project is carried out in the idea of a creative group or team, or an innovative venture company is created.

Financing applied research is associated with economic risk, since there is a high probability of obtaining a negative result - investments for these purposes are usually called risk investments. Applied research is carried out by scientific and technical industrial organizations and university departments.

2. Creating an innovation involves four stages.

R&D is the final stage of scientific research, i.e., the transition from laboratory conditions and experimental production to pilot production, and subsequently to industrial production (Fig. 1.7, 1.8).

Experimental developments– an activity that is based on knowledge acquired through research or practical experience.

Development should be understood as systematic work based on existing knowledge obtained as a result of scientific research and (or) practical experience and aimed at creating new materials, products or devices, introducing new processes, systems and services or significant improvement of those already produced or put into operation . These include:

· development of design solutions (DS) – the design of an engineering object or technological system (design solutions and work);

· development of design solutions (PD) - ideas and options for a new object, including non-technical ones, at the level of a drawing or other system of symbolic means (design solutions and work);

· development of technological processes for pilot, serial and mass production, i.e. ways of combining physical, chemical, technological and other processes with labor processes into an integral system that produces a certain useful result (technological work);

· creation of prototypes (original models that have the fundamental features of the innovation being created), testing them for the time necessary to obtain technical and other data and accumulate experience, which will later be reflected in the technical documentation on the application of innovations.

At this stage, the final verification of the results of theoretical research is carried out, the corresponding technical documentation is developed, and a technical prototype or pilot technological process is manufactured and tested. Funding is not for the entire cycle of work at this stage, but according to the most significant results.

Technical prototype is an actual working example of a product, system or process that demonstrates suitability and performance in accordance with specifications and manufacturing requirements. Most inventions and utility models equivalent to them appear at the R&D stage.

Architectural and construction work aimed at creating production areas for new production from manufacturers and areas required for the use of new equipment and, accordingly, new technology from consumers. Design solutions (DS) are developed and applied (Fig. 1.7, 1.8).

Technical preparation of production(CCI) (Fig. 1.7, 1.8). At this stage, preparation and development of production are carried out (description of possible production methods, indicating basic materials and technological processes, conditions of operational and environmental safety). Pre-production is the period during which a product must be prepared to enter the market. The result is a prototype—a full-scale operating model designed and built to determine the manufacturing requirements of a new product. The prototype fully complies with the industrial design standards of the final product being mastered in mass production.

Design pre-production (DPP) at the plant is carried out with the aim of adapting the design documentation of R&D to the conditions of a specific serial production - the manufacturer (Fig. 1.8). Practice shows that R&D design documentation already takes into account the production and technological capabilities of manufacturing enterprises, but the conditions of pilot and serial production have significant differences, which leads to the need for partial or even complete revision of R&D design documentation. The gearbox is produced by the department of the chief designer of a serial plant (OGK) or the serial department of a research institute, design bureau, design bureau in accordance with the rules of the “Unified System of Design Documentation” (ESKD). During the checkpoint process, designers must take into account the specific production conditions of the manufacturer to the maximum extent possible:

· availability of unified, standard parts and assembly units manufactured by the enterprise or related enterprises;

· available means of technological equipment and control;

· available technological and non-standard equipment, vehicles, etc.

The scope of work of the manufacturer's gearbox includes:

· receiving design documentation from the developer;

· checking documentation for completeness;

· making changes in accordance with the characteristics of the manufacturer;

· making changes based on the results of testing the design for manufacturability;

· making changes based on the results of technological preparation of production;

· technical support for the production of a pilot batch of products;

· making changes to the design documentation based on the results of manufacturing a pilot batch;

· assigning the letter “O 2” to the documentation for the production of the installation series;

· technical support for the production of installation series;

· translation of documentation into letter “A” for established mass production;

· issuance of repair, export and other documentation;

· technical support for serial production.

Currently, methods of computer-aided design and creation of design documents (CAD) are becoming increasingly important in the work of checkpoints.

The continuation of the checkpoint is technological preparation of production(TlPP) is:

– a set of methods for organizing, managing and solving technological problems based on the use of comprehensive standardization, automation, economic and mathematical models and technical equipment;

– a set of interrelated processes that ensure the technological readiness of the enterprise to release a new product on time, with specified quality parameters, production volume and cost level.

TLPP is regulated by the standards of the “Unified System for Technological Preparation of Production” (USTPP). ESTPP standards establish general rules: organization and modeling of production management processes, stages of development of technological documentation, the procedure for preparing production, rules and stages of testing the manufacturability of product designs, selection of nomenclature, rules for classifying types of technological processes, etc.

The system is based on state standards - the unified system of design documentation (USD) and the unified system of technological documentation (ESTD). The basis of the ECTPP, along with state standards, is the use of industry standards and enterprise standards that reflect the specifics of the industry or enterprise, specifying and developing the private rules and regulations of the ECTPP, as well as regulatory, technical and methodological documentation. The stages of the TLPP, the content of the work and the performers are given in Table. 1.10.

Table 1.10. Stages of technical documentation, content of work and performers

Stages of TlPP	Contents of the work of the Chamber of Commerce and Industry	Performers

TPPP planning	Forecasting, planning and modeling of TLP	Production Preparation Planning Service (PPPP)
Process design	Distribution of items between workshops and divisions of the enterprise	OPPP
Development of technological routes for the movement of production facilities	OPPP
Development of technical processes for the manufacture and control of parts, assembly and testing and all other technological documentation
Typification of technological processes, development of basic and group processes	Departments of chief specialists (OGT, OGS, OGMet, etc.)
Feasibility study of technological processes	Departments of chief specialists, economic department

Equipment selection	Selection and justification of universal, special, modular and non-standard equipment. Issuing assignments for the design of this equipment, as well as for the design of flexible automatic, automated, robotic lines and complexes, conveyors, vehicles, etc.	Departments of chief specialists
Selection and technological design of equipment	Selection of the necessary special, universal and unified equipment. Design (technological design) of equipment. Feasibility studies for the selection and use of equipment	Technological and design departments of the main specialists. Economic department
Rationing	Establishment of operational technical time standards for all technological processes. Calculations of material consumption rates (detailed and summary)	Labor and Salary Department. Departments of Chief Specialists (CGD)

Organizational preparation of production (OPP) involves the formation or improvement of the structure of technological services and the preparation of information, mathematical and technical support necessary for TlPP, i.e. work to normalize the need for various types of resources, development of methods for organizing production and labor (changes in forms and methods organization of labor and production, changes in personnel structure).

Organizational preparation of production (OPP)– a set of works and processes aimed at developing a project for organizing in time and space the production process of manufacturing a new product, a system for organizing and remunerating labor, a logistics system, a regulatory framework for in-plant planning for products being put into production for the first time.

Organization of environmental preparation of production (EPP)– the process of preparing the production of an environmentally friendly product, combining a set of interrelated measures that ensure the technical, technological and organizational-planning readiness of the enterprise to produce a new product with specified environmental quality parameters.

The specificity of the design solution for environmental preparation of production is the study of three stages of the product life cycle: manufacturing, operation and disposal, while the following work is performed:

· analysis of the manufacturability of the design (together with designers, technologists and ecologists);

· development of drawings after the installation series;

· laboratory research to improve environmental quality;

· control over serial production and operational changes.

Economic preparation of production consists of preparing financial resources and assessing economic efficiency, as well as the main stages and results of innovative processes, sources of their financing.

The labor intensity of work on the TPP and the costs of its implementation significantly exceed the costs of R&D. For example, in the USA, the cost of industrial development is 11 times higher than the cost of R&D. According to research conducted at the State University of Management, this ratio ranges from 4.6 (in small-scale production) to 8 (in large-scale production).

Industrial production. This is the period during which a new product is manufactured in serial, mass and special industrial production, in accordance with market requirements (Fig. 1.8).

Module 1. Innovation. State innovation policy

The essence and concept of innovation and innovative activity as a factor in effective economic development

1.1 Subject, goals and objectives of the course “Economics and Innovation Management”

1.2 The essence and concept of innovation and innovative activity as a factor in the effective development of organizations

1.3 Innovation life cycle

1.4 Classification of innovations

Subject, goals and objectives of the course “Economics and Innovation Management”

Purpose The course being studied is to master the basics of managing innovation processes as a modern approach to managing scientific and technological progress in the areas of industrial, economic and administrative activities.

Innovation Management is a purposeful system for managing innovation activities and relationships that arise in the process of innovation in an organization, with the goal of achieving maximum efficiency of innovation as the most important factor in socio-economic development.

The purpose of innovation management is to determine the main directions of scientific, technical and production activities of the organization in the areas of development and implementation of new products and technologies, modernization and improvement of manufactured products, further development of production and management.

Main tasks economics and innovation management courses are:

1. Formation of a clear idea of scientific and technological progress and its main directions.

2. Formation of knowledge about the features of innovative and scientific activity, its economic mechanism and management.

3. Obtaining practical skills in using acquired knowledge in the field of management of innovative and scientific activities.

The essence and concept of innovation and innovative activity as a factor in the effective development of organizations

For the first time, the definition of “innovation” (from the Latin word innovation - renewal, improvement) appeared in the scientific research of cultural scientists in the 19th century. and then meant the introduction of some elements of one system into another.

They started talking about innovation in relation to economics more than a hundred years ago: in 1911, the Austrian economist J. Schumpeter in his work “The Theory of Economic Development”

Innovation– created and practically used (brought to the consumer) new or improved types of products, technologies or services, as well as organizational decisions of an administrative, production, commercial or other nature, providing an economic effect (social, environmental or other effect).

The main features inherent in innovation:

· must have a market structure to meet consumer needs.

· any innovation is always considered as a complex process, involving changes of both a scientific and technical, and economic, social and structural nature.

· in innovation the emphasis is on the rapid implementation of innovations into practical use.

· innovations must provide economic, social, technical or environmental benefits.

Innovation process is the process of transforming scientific knowledge into innovation, which can be represented as a sequential chain of events during which innovation matures from an idea to a specific product, technology or service and spreads through practical use.

Modern innovative activity is based on the following methodological principles:

Priority of innovation over traditional production

Cost-effectiveness of innovative production (achieving commercial success)

Flexibility (an independent innovative structure is created for a new idea, which may be completely unsuitable for solving other problems)

Complexity (a cardinal innovation usually causes the emergence of a whole set of accompanying smaller innovations).

Subjects of innovation activity are innovative organizations, i.e. those organizations that are directly involved in innovation activities or contribute to this activity. In the case of creating innovative products, the main subjects of innovative activity are production organizations - firms producing these products.

Life cycle of innovation

Life cycle of innovation is a set of interrelated processes and stages of innovation creation. The life cycle of an innovation is defined as the period of time from the origin of an idea to the discontinuation of an innovative product based on it.

Innovation in its life cycle goes through a number of stages, including:

Origin, accompanied by the completion of the required amount of research and development work, the development and creation of a pilot batch of innovation;

Growth (industrial development with simultaneous entry of the product into the market);

Maturity (stage of serial or mass production and increasing sales volume);

Market saturation (maximum production volume and maximum sales volume);

Decline (curtailment of production and withdrawal of the product from the market).

From the standpoint of innovation activity, it is advisable to distinguish both the life cycles of production and the life cycles of circulation of an innovation.

The first stage – the introduction of an innovation – is the most labor-intensive and complex. It is here that the volume of expenses for mastering production and releasing a pilot batch of a new product is high.

The second stage - the stage of industrial development of production - is characterized by a slow and extended increase in production output.

The third stage - the stage of recovery - is characterized by a rapid increase in production, a significant increase in the utilization of production capacity, and the well-established technological process and organization of production.

The fourth stage - the stage of maturity and stabilization - is characterized by a stable pace of the highest volumes of product output and the maximum possible utilization of production capacity.

The fifth stage - the stage of withering or decline - is associated with a drop in capacity utilization, curtailment of production of a given product and a sharp decrease in inventories down to zero.

The life-cycle concept of innovation plays a very important role in determining both the maximum output, sales and profits, and the life cycle of a particular innovation.

The life cycle of an innovation consists of an R&D phase, a technological development phase, a stabilization phase of production volumes, and a phase of declining sales volumes.

In the initial phase, fundamental theoretical research, applied research and design development are carried out. The result of their implementation is new knowledge and scientific ideas. It is they who form the knowledge potential for innovation, which is an intellectual product whose market value is very difficult to estimate. At this stage, the first sample of a new technology or other innovation is often produced, which is a form of expression of the received information, its illustration.

The main goals of the technological development phase of production are its preparation for the implementation of development results and the provision of the necessary conditions for this.

The next phase involves stable production of specific types of products.

The final phase of the innovation life cycle includes a decrease in sales volumes and further ensuring demand for products through the use of new technological solutions.

Thus, the innovation process, being part of the innovation life cycle, includes various stages - from research and development of new technology to bringing it to industrial implementation.

The final stage of the innovation process, associated with the development of large-scale production of new products, requires reconstruction of production facilities, improvement of technology, personnel training, advertising activities, etc., which requires attracting investments. However, investments continue to be risky, since the market reaction at this stage is still unknown. Therefore, the marketing stage is very important, which creates demand for new products and provides feedback to consumers of the manufactured product.

The higher the level of innovative potential of an enterprise, the more successfully it avoids possible crisis situations. The innovative potential of an enterprise is determined by both technical and managerial factors, which include:

- the previously established level of production development;
- condition of the mechanism and control system;
- type and orientation of organizational structure;
- trends in economic and innovation policy;
- understanding the need for various kinds of changes and the readiness of staff for them, etc.

Particularly difficult for an entrepreneur is the stage of marketing new products, i.e., transferring them from the “donor” (supplier) to the “recipient” (consumer). Entrepreneur-

The manufacturer usually proceeds from two strategies for “invasion” of an innovation into the market: “programmed introduction,” which suggests that the consumer adapts to a new product, and “adapted introduction,” associated with changing the product in accordance with consumer requirements.

Transferring an innovation to the consumer often involves teaching him how to use the product. Therefore, manufacturers often bear not only the training itself, but also the associated costs. At the same time, entrepreneurs organize training for their own traveling sales agents, developing their ability to convince consumers, and various situational techniques of a psychodramatic nature are worked out in advance. The profitability of innovations depends on the degree of distribution of innovations (diffusion). Therefore, an entrepreneur must take into account not only economic and production conditions, but also the cultural and psychological differences of consumers from different countries and regions, as well as their age and gender characteristics. The commercial success of one innovation becomes the basis for subsequent innovations, while “fear of innovation” is a consequence of previous unsuccessful innovations, leading to a “psychological barrier” associated with the fear of loss of status, bankruptcy, etc. It is often caused by the insufficient qualifications of the entrepreneur, the inability to attract to the innovative activities of employees of various job groups, to effectively use the specifics of the human factor of production.

There are two main types of innovation strategy:

- adaptive, when an enterprise uses innovation as a response to changing market conditions in order to maintain its position in the market, i.e. for the purpose of survival;
- competitive, when innovation is used as a starting point for achieving success, a means of gaining competitive advantages.

The decision to implement an innovative project is preceded by a careful comparison of the expected costs of its implementation (taking into account the assessment of technical and commercial risks) and the financial capabilities of the company, which is reflected in the business plan. The financial position of the company determines the possibility and efficiency of using borrowed funds for innovation.

In modern conditions, an effective form of implementation of innovation activity is the management of capital invested in innovation, taking into account the peculiarities of the innovation process.

Features of the innovation process create conditions for the mutual influence of innovation and investment cycles in the process of creating innovations, reducing their duration and the possibility of their interaction in order to minimize the volume of investment resources and optimal use of advanced funds and achieve a commercial effect from the sale of an innovative product.

Innovation activity traditionally involves a sequence of investments, rather than parallel investments in all or several stages of the innovation life cycle.

At the same time, the loss of the commercial effect of innovation is due to the fact that interruptions in financing are sometimes long-term, both customers and the specialization of future production change.

The theory of combining innovation and investment cycles is based on the following proposition: innovation is

result of activity. At each relatively independent stage of the innovation cycle, a certain result may arise that can become an independent product. However, the result of a specific stage of the innovation cycle acts in relation to the final innovative product only as its intermediate form, i.e., an intermediate product.

Therefore, the investment policy for the development of an innovation can be focused on the final product and on the effective reproduction of the innovation in any of the relatively

independent stages of the innovation process. Myself

the innovation cycle can be stopped if the investor sees the feasibility of turning an intermediate result into a commodity (research methodology, technology know-how, etc.).

The above considerations allow the following formalization. If the cash flow at stage t is denoted as S(m), then in comparable prices to the base point in time, it will be equal to:

S(t m , ti)=S(m) KjXK 2 x to 3

and an integral assessment for the entire innovation cycle

XS(t m , t,)= X S(m) k,x k 2 x k 3

where is K! - coefficient taking into account the amount of inflation at time t in corresponding to the end of stage w; k 2 - coefficient taking into account the influence of risk at stage III; k 3 - coefficient taking into account the distribution of cash flows at stage w.

These coefficients are a function not only of the stage number, but also of the period during which inflation, risk and depreciation of money “accumulate”. Comparison of cash flow values at different stages and at the end of the innovation cycle allows the manufacturer of an innovative product to decide whether it is advisable to carry out all stages or limit itself to work at specific stages.

An effective enterprise management strategy is to increase the competitiveness of products, in particular, to “introduce” product innovations onto the market. In this regard, within the framework of marketing research, the task arises of comparing the assessment of an innovation product with prototype products in terms of price, functionality and meeting the relevant needs of potential buyers.

Financial support is the activity of attracting, distributing and using capital, as well as managing it in the risk capital market. As an integral part of the innovation sphere, innovation capital mediates every stage of innovation activity. The most significant parts of the total national capital serving innovation activities are state capital, loan capital, investments in securities, venture capital, foreign capital, as well as the own capital of business entities.

The scale of investment in the innovation sector varies in different phases of the cycle. The development of basic investments, which requires large investments that pay off in the long term, occurs during periods of recovery and recovery. Since the propensity to save and innovate during a crisis weakens, the state directly (through budgetary investments) and indirectly (through the provision of economic benefits) supports innovative activity, helping to revive the economy and enhance its competitiveness. The scale of government support in the phases of recovery and stable development is reduced, and the innovation process itself is carried out on a competitive basis. During this period, improving innovations predominate, requiring less investment and not associated with such significant risks as in the case of basic innovations. This also makes it possible to reduce the scale of government support for innovation activities. The level of innovation and investment activity is minimal in the crisis phase, when pseudo-innovations that do not require significant improvements develop.

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