Ph.D. Korokoshko J.V., Rosseeva T.V

Mordovian State University named after N.P. Ogarev, Russia

 

Scientific views on innovation policy of enterprises

 

Nowadays, the priority of the Russian economy is its transition to an innovative development. The increase of output is becoming possible due to developing and using innovations as well as to their rapid spreading. The implementation of innovative decisions is a prime mover for a technological and economic development of the country. Creating an enabling environment for innovative activities is the major task of State governmental authorities of the Russian Federation at all levels. A new market and business environment, Russian companies operate in, prioritize the need for independent, rational and purposeful economic behavior oriented towards the competitive market and expanded reproduction by producing innovative products.

The success of an enterprise operation directly depends on the development and  adaptation of new technologies for producing new products of higher quality with less input that provides competitive advantages in a market economy.

The need to implement innovative projects requires enterprises form innovative business policies harmonizing the interests of all participants of innovation processes. The policies must meet the following requirements:

- towards consumers - to ensure quick response to the state and changes of the market;

- towards competitors to control the activities of competitors;

- towards all participants of innovation processes to harmonize the interests  an enterprise, region, state and employee;

- towards people – to provide social-oriented activities by producing environmentally friendly products, making stricter environmental standards, protecting consumers, creating comfortable work conditions, fulfilling potential of every employee.

The development of innovations is one of the main areas of strategic planning while innovation policy of the enterprise is the basis for forming its innovative business strategy [2]. The role of innovation policy for the strategic planning is shown in Figure 1.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Fig. 1  The role of innovation policy for the enterprise strategic planning

 

As it is shown in Figure 1 innovation Policy of the enterprise is defined as a single set of business processes, when the result of the previous process is the basis for the next one. An innovation policy based on an innovative strategy is sensitive to objectives, principles and priorities of the enterprise innovation activity. The objectives of the company, the chosen methods of forming its innovation policy, as well as the company’s resources determine corporate, business and functional strategies of the enterprise innovation policy. The enterprise innovative policy defines the criteria for strategic decision-making and enables to construct a system of an innovation management in the organization.

Therefore, an innovation policy is essential condition for the successful operating of a business in the modern market environment. The literature provides various definitions for the concept of «innovation policy». Some of them are presented in Table 1.

Table 1 – Scientific views on the concept of «innovation policy»

Author / source definition
«Innovation Policy»

 

Defining
«Innovation Policy»

 

The concept of innovation policy in the Russian Federation for 1998 - 2000 years.

 

Process aimed at implementing the results of completed research and development or other scientific and technical advances in a new or improved product, sold at market, in a  new or improved technological process used in practice, as well as the additional research and development.

 

Appendix to the project «Basic Policy of the Russian Federation in the field of national innovation system for the period up to 2010 and beyond»

 

Activity on the reproduction of the search, basic and applied research, design and development activities, marketing activities in order to engage their results in the civil turnover for implementation in the form of an innovative product.

 

Glossary Center for Science Research and Statistics

Type of activity associated with the transformation of ideas (usually the results of research and development or other scientific and technological achievements) in new or improved product introduced on the market, in new or improved manufacturing process used in practice or in a new approach to social services.

Teaching aid «Innovation Management» Ogoleva L.N.

 

The creative process and creating innovations, implemented as a maximum of innovative alternatives, innovation needs and entrepreneurial efforts.

Official statistics

 

The totality of all events for the creation, acquisition, development and dissemination of new and improved products, services, technology, raw materials, methods of production organization and management.

 

The definitions of an innovation policy given in table 1 have no significant differences. All definitions describe an innovation policy as a particular sequence of steps for implementing a system of measures aimed at creating new or improved products and processes having a commercial value. Based on these definitions one can formulate the following definition of an innovation policy. It is a set of actions and measures conditioned by the objectives and chosen strategies for innovation developing the enterprise aimed at creating and implementing innovative products with the use of new or improved techniques, technology, organizational and economic processes, to give the enterprise competitive advantages and meet the needs of customers.

To determine the nature of the innovation policy of a company must formulate its aims, objectives and principles.

The main purpose of the innovation policy of the enterprise is to create conditions for innovative development company, increasing production efficiency and increased competitiveness in the long term through innovation. The tasks of innovation policy are as follows:

- support the priorities and directions of innovative development of the enterprise;

- competent organization of innovation processes to ensure effective interaction between all actors of innovation;

- assessment of innovation potential of enterprises;

- intensification of innovation activities of the enterprise;

- selection and implementation of innovative projects that affect the competitiveness of  enterprises;
- develop scenarios of innovation development of the enterprise;

- concentration of resources on priority directions of innovation policy of the company;
- other activities that influence the innovative activity of enterprises.

The basic principles of an innovative enterprise policy should include: compliance with the requirements of the market, the dominance of strategic options, complexity, continuity of development, adaptability, search activity, multi-variant decision making, efficiency and allowance for uncertainty factors in the external environment of the enterprise.

The literature distinguishes internal and external innovation policies of the enterprise. External innovation policy is a general line of conduct to the organization in the market, leading to an increase in its level of development and determines the priority innovation projects. It is determined by the external environment, market needs and internal capacity of the enterprise. Internal innovation policy of the enterprise is a process of regulating the conduct of staff, aimed at innovative type of development organizations and enterprises to innovate. It is determined by the organization's management system. In general, innovation policy is the management of the company's choice of priority directions of innovative process development and execution of innovative plans and projects, as well as the formation of innovation-active relationship between the employees in your organization.

In the development of innovation policy, usually divided into four functional areas of innovation management of the enterprise:

1) Research and development.

2) Quality management and certification in accordance with the composition and volume elements of State Standard Specification.

3) Creating an updated production base.

4) Market development of innovative products.

Innovative research and development businesses include: search and functional studies, applied research, technical development (experimental design, technological, and organizational design) and pilot production, and the first development of innovation (technical and economic), dissemination and replication of innovations.

Development of an improved production basis is a plan for technical re-compiled in the form of business plans for investment and innovation projects to control locking payback, profitability, net present value and internal rate of interest on each business plan.

Developing an innovative policy of the enterprise is a complex process that involves three basic steps:

1. Select the direction of innovation policy. At this stage, the task of the enterprise is to examine options for possible future market situation and define the goals of the enterprise. After that, the idea formed in alternative goals, which are supposed to implement the enterprise.

2. Strategic planning for innovation. At this stage the company is developing options for alternative ways and means to achieve the selected goals in the previous step. By comparison and evaluation is carried out selecting the best option to achieve the set goals and develop a final strategy. The strategy describes the overall direction of the search and development of innovations, how to achieve the objectives of innovation, as well as its feasibility study. The end result of strategic planning is to create an innovative project is directly in line with the chosen strategy of innovation enterprise.

There are two main types of strategies in the innovation policy of the enterprise [3]:

The policy of «technological leader», when new discoveries, inventions, ideas, first introduced in production for enterprises, the primary innovators of superiority.

The policy of «simulator» in which the inventions, know-how, ideas and discoveries are being implemented to re-enterprise’s imitators, as well as in the case of new products are not new in the world market.

The policy of «technological leader» based on the fact that the manufacturing facility has become the main executor of innovative processes, which form new commodity markets. Innovation policy in this case, the company intends to create market new products with the passage of the following steps:

• formation of new buyers as the new market environment;

• selection of potential buyers;

analysis and forecast of development of a new market;

• requests for new products and information on claims;

development of production ideas that are in demand;

checking the production of ideas in the laboratory or in the market.

Innovation policy «business simulator» Innovation is based on meeting the emerging needs of customers, focus on their initiative and goes through the following steps:

• the buyer puts the idea of necessary products or suggestions for its improvement;

buyer searches for an appropriate manufacturer and refers to him with his proposal;

the manufacturer selects the idea of consumers about new products and improve it;

the manufacturer specifies and implements the ideas of customers.

In this connection, in the heart of the development of innovative policy initiatives, the company is the interaction of producer and consumer. On the basis of invention and introduction of innovations combined activity of the manufacturer and consumers.

3. Operational planning of innovations. The development of an innovative project involves several distinct stages. As part of the obtained phases are planned separate activities whose purpose is to implement innovative strategies. Each event defines a start and end dates of specific work, the number of performers required resources and performance indicators. As a result, operational planning, detailed coherent plan of action to implement the innovation enterprise.

Identify completely new innovative (new discoveries, inventions and ideas) and improved (upgraded) products. In accordance with this develops innovative business strategy and determined the risk of innovation, the degree of which may be different.

Innovation policy, aimed at the partial modernization of equipment and production technology, upgrading products, lower production costs and increase the material interest of team members in the outcome of labor, related to the acceptable or tolerable risk and the terms of a gradual increase in the efficiency of business enterprises.

With a significantly greater risk associated innovation policy implementation and use of innovative science and technology, significantly changing the technical base of production and organization management. These include fundamental developments in the field of engineering and technology, new organizational and economic decisions related to the decentralization of decision making and execution, with a low level of formalization and regulation of administrative operations, the ability of the organizational structures of management flexibility to restructure in response to changes in tasks and conditions of work.

In this regard, it is important to highlight the various challenges and risks associated with the implementation of innovative policies by Russian enterprises:

• reduced costs of innovations due to the reduction of investment not only in science but also in technical modernization, renovation of production and products;

growth rates lag behind the world-class scientific and technical progress on a wide range of quality parameters of the technique;

sharp decrease in the number of research groups, communities, institutions, large-scale emigration of specialists abroad;

lack of flexibility in the existing logistics, production and economic, social and organizational structures;

excessive duration of the innovation processes in time;

limited diffusion of innovation;

low proportion of radical innovations in total;

lack of interest in innovation by targeting companies in the current adaptation;

almost complete cessation of investment programs and technical re-equipment and modernization over the past 10 years, the lack of necessary industrial and scientific-technical policy.

So, the formation of an innovation policy is a long and complicated process that depends on the types of developed and used innovations. It is possible to allocate different scientific views on the enterprise innovation policy, they are determined by a system of goals, objectives, principles, strategies, and risks of an enterprise which conduct  innovative activities.

Literature:

1.      Korokoshko, Y. V., Rosseeva, T. V. Problemy i perspektivy razvitiya innovatsionnoi dyeyatelnosti rossiiskoi ekonomiki. IV yezhegodnaya vserossiiskaya s mezhdunarodnym uchastiem nauchno-prakticheskaya konferentsiya studentov «Chelovek. Obshchestvo. Ekonomika: problemy i perspektivy vzaimodyeistviya»: materialy nauchno-prakticheskoĭ konferentsii. – Perm: ANO VPO «Permskii institut ekonomiki i finansov», 2010. – P. 67 – 69.

2.      Marinets I.N. Innovatsionnaya politika predpriyatiya: sushchnost, so-derzhanie, problemy formirovaniya. // Vestnik Severo-kavkazskogo gosudarstvennogo tehnicheskogo universiteta, 2010. – ¹1 (22).

3. Yermasov S.V, Yermasova N.B. Innovatsionnyi menedzhment: uchebnik dlya vuzov. – M.: Vysshyee obrazovanie, 2007. – 505p.