Экономические науки/6. Маркетинг и
менеджмент
Olena M. Ovcharska
Odessa national polytechnic university, Odessa, Ukraine
Venture
capital as a source of financing
innovation
activity of the economic system
In
the context of fierce international competition and global tendencies of
transition to the innovative way of development the creation of a stable
economic system is impossible without creation of effective innovation
mechanism and significantly improve the efficiency of fundamental and applied
research. The level of development of science, engineering and technology - one
of the main factors determining the current state of any country in the world
economy.
The
role and position of the state in the system of international relations, the
degree of economic security depends on the effectiveness of innovation policy.
However, one of the main problems of implementation of new technological
solutions in the economy, is effective financing of innovative activity. On the
one hand, the state today is not using the full extent of available investment
opportunities, on the other hand, actually initiate the innovation process more
able private capital. That is why venture financing is one of the necessary
support mechanisms for innovative development of the national economy.
Most
reputable scientists in the functioning of venture capital are Harvard
University Professor Josh Lerner (Josh Lerner)and Paul Gompers (Paul Gompers),
and Professor, University of Chicago - Samuel Kortum (Samuel Kortum). In their
works they pay attention to the history of formation and nature of venture
capital, determinants of accumulation, the state's role in the functioning of
venture capital, and directly impact of venture capital on innovation.
By
definition, National venture capital Association of the USA "venture
capital is the financial resources provided by professional investors who
invest in young, rapidly growing company with the potential of turning into a
company, making a significant contribution to the economy. Venture capital is
an important source of funds for start-up companies"
Why
venture capital is so important for innovative development of the economy? This
is explained by the following factors:
First,
venture business plays the role of a milestone, marking the most perspective
directions of technological development. The venture capital serves as a signal
for the banks, major corporations, States, about opportunities of getting high
yields from investment objects. Thus, there is a redistribution of accumulated
capital in favor of the most promising sectors of the economy (technologies).
Secondly,
venture capital stimulates competition, pushing corporations to increase
innovative activity. This, ultimately, increases innovation capacity and
competitiveness of the economy as a whole.
Third,
venture business forms (especially in transition economies, emerging markets)
new concepts of values and business ethics, new models of work organization.
Increases the value of personal initiative, creativity. Of special significance
is the motivation in the initial stages, not connected with profit making.
Fourth,
creates an investment mechanism adequate to the needs of rapid development on
the basis of revolutionary changes in technology. This mechanism, in spite of
its complexity, has the flexibility to respond quickly to innovation.
Today
in Ukraine venture business is at the initial stage of formation. The volume of
investments from venture capital funds in innovative sector does not exceed 5 %
of the total direct investment . The number of venture investors today too
little, moreover, among them almost missing funds with domestic capital. The
total amount of attracted their capital ranges from 200-300 million, but
actually invested no more than $ 100 million. The amount of invested funds in
Ukraine is not more than 1 % of annual revenues in European venture capital
funds.
The
main reasons for the insufficient development of venture financing in Ukraine
are:
insufficiently
prepared normative-legal base; underdeveloped stock markets, making it
difficult to attract and free exit venture capital from innovative firms;
creation of venture funds mainly due to foreign capital and a significant
deficit of own funds; low integration of science, education and production;
lack of state support for venture capital funds; high (even for venture
capital) risks; poor infrastructure (in particular, examination of innovative
projects, risk insurance, etc.,); low innovative culture that causes a lack of
interest of entrepreneurs in venture funding; imperfect information base on
innovative projects and prospects of development of the companies.
Ukraine
has all business opportunities. And not because there are good conditions for
doing business. On the contrary, the risks are high, competition below, foreign
investors are afraid to work here. To activate venture investment needs at the
state level using regulation to stimulate this activity with the purpose of
development of innovative behavior of the economic system. Prospects of further
research are connected with the revealing of the factors limiting the
development of venture entrepreneurship and the development stages to
neutralize these factors and the translation of the national economy to
innovative economic development.
References
2. Прощалыкина А. Н. Венчурное
финансирование инновационной деятельности в Украине. [Электронный
ресурс] Режим доступа: http://elib.bsu.by/bitstream/123456789/18946/1/Прощалыкина_Венчурное финансирование.pdf