The Analysis of Small Innovative Business Development in Foreign Countries

In many innovation-developed countries, innovative technologies are mostly implemented by small businesses [2, 6]. Due to small innovative businesses, innovative technologies find a practical application in society.

Small businesses bring unemployment under control, play an important role in drawing up regional and local budgets, creating a basis for social partnership, democracy and civil society development.

The experience of innovative activity development in foreign countries shows [5] that the governments create favorable innovation conditions and encourage commercialization of research results via small innovative businesses. For example, in the USA, the federal program SBIR (Small Business Innovation Research) aims to provide seed funding for small innovative businesses in the early development stages [7, p. 126]. One more program STTR (Small Business Technology Transfer) helped implement innovative technologies, establish relations between federal research centers and universities and small businesses. STTR provides financial support for small businesses which carry out joint researches with universities and federal research centers on the terms of of co-funding.

The successful implementation of these programs was of great significance for the US small innovative business and innovative economy development. According to foreign experts, even though only a tenth of small businesses managed to commercialize innovative products using these programs, budgetary revenues are in large excess over program implementation costs.

In South Korea, innovative technology commercialization model is based on the close interaction of universities and small and medium-sized businesses (99 % of all businesses in Korea). To solve engineering tasks, small and medium-sized businesses apply to the universities which select experts and involve students in performing research tasks. As a result, companies solve production tasks, universities make a certain amount of money and develop infrastructure, and students have knowledge on innovation technologies and relationship with prospective employers.

At present, due to the Federal Act 217-FZ of 2009 [3], the most popular way to commercialize intellectual property is to start small innovative businesses. The Act was enacted in order to implement the results of innovative activities of research and educational institutions into the market [1]. As a result, a great number of small innovative businesses were founded at universities.

Thus, we can conclude that in different countries models of university innovation commercialization differ in their mechanisms and roles of universities in innovative development of the country. However, the main role of universities in innovative development is to train experts for innovation economy and involve students into research activities [4].

References

1. Bovkun A.S. Characteristics of assessment and intellectual activity result analysis for National Research Irkutsk State Technical University when starting small innovative businesses // Bulletin of Irkutsk State Technical University. 2011. Vol. 11 (58). P. 212-215 (in Russian).

2. Bovkun A.S. Problems of innovative development in Russia / In: Young Economy: Economics through the eyes of young scholars. Proceedings of Research and Practical Conference. Central Economics and Mathematics Institute of the RAS. Moscow. 2014. P. 20-21 (in Russian).

3. Bovkun A.S., Yanashek Yu.G. Case-study of registration of intellectual property rights of small innovative businesses // Bulletin of Irkutsk State Technical University. 2013. Vol. 8 (79). P. 217-221 (in Russian).

4. Bovkun A.S. Development of approaches to increase the efficiency of university innovative activities. PhD thesis in Economics. Irkutsk State Technical University. Irkutsk, 2014 (in Russian).

5. Zakharov S.V. Partnership of large and small companies aimed at implementing innovative development models // Proceedings of the Russian Academy of Entrepreneurship. 2014. Vol. 41. P. 441-448 (in Russian).

6. Zakharov S.V. Foreign experience of innovative business development // Problems of modern economy development: Collection of Papers of the IVth International Research and Practical Conference. Stavropol. 2014. P. 44-48 (in Russian).

7. Spitsyn D.A. Federal support of venture business in the USA // USA – Canada: Economy, policy, culture. 2010. Vol. 1. P. 123-127 (in Russian).