scholarly journals ESSENCE AND SPECIFICS OF VENTURE INVESTMENT INTO INNOVATION ACTIVITY

2021 ◽  
Vol 4 (39) ◽  
pp. 362-367
Author(s):  
Yu. Zhornokui ◽  
L. Doroshenko ◽  
O. Ruban ◽  
D. Тymoshenko
Keyword(s):  
Venture Capital ◽  
Public Investment ◽  
Innovation System ◽  
Private Investment ◽  
Global Strategy ◽  
Innovation Activity ◽  
Corporate Capital ◽  
Venture Investment ◽  
Private Investments ◽  
Venture Company

Abstract. On the basis of the analysis of scientific approaches and practical application, the authors have concluded that venture investment of innovation activity is a type of entrepreneurship based on the ability of an entrepreneur to accumulate investments from various sources, which is focused on the practical use of technical and technological innovations that are assessed as highly profitable, and which is aimed at fulfilling scientific and technical projects that have not been tested in practice, as well as at improving existing ones in order to exercise intellectual property rights and make a profit and (or) other effect (benefits). It has been noted that the analysis of the essence of venture investment of innovation activity at the current stage of the development of the National Innovation System, suggests that inter-temporal changes of public investment growth, which should act as an institutional magnet, are much greater than the dynamics of private investment. One of the key problems of the modern Ukrainian model of the development of venture industry, which is implemented at the state level, is the imbalance between public and private investments, which must be promptly eliminated. The temporary lack of private investments in Ukraine has been so far successfully replaced by public investments, but it is necessary to create a stable market for both private Ukrainian and foreign venture capital for the effective implementation of the global strategy of building an innovative economy. The authors have substantiated the position that the process of venture investment into innovation activity consists of two stages: 1) invention and development of the object of venture investment and 2) implementation and realization of the obtained result into production, services sector, etc. The specified stages can be combined or considered separately depending on the specialization and (or) specifics of the venture company. An approach to the recognition of two most common forms of venture investment into innovation activity has gained the development. These forms are: 1) investment into corporate capital of companies and 2) investment loans. However, both of these forms are often used simultaneously in practice. The essence of venture investment into innovation activity abroad compared to Ukraine, is the identity of the ultimate purpose of venture and innovative entrepreneurship, which is to make a profit through the industrial introduction of advanced technologies (materials, products, production methods, etc.), despite the fact that methods and means to achieve this purpose are different. Thus, sources of investment of venture entrepreneurship are diversified in different countries from purely private (through specially created structures) to a combination of private and public investment resources. It has been substantiated that venture investments are currently the most affordable alternative to loan financing. One can confidently state that this form of investment is the most profitable for the recipient company, because the previous experience of investors always has a positive effect on a venture company. Keywords: venture entrepreneurship, innovation activity, an investor, investment, venture capital, corporate capital. JEL Classification D92, E22             Formulas: 0; fig.: 0; tabl.: 0; bibl.: 11.

The Crowding-in/ out Debate in Investments in India: Fresh Evidence from NARDL Application

2020 ◽  
Vol 9 (2) ◽  
pp. 167-189
Author(s):  
Nusrat Akber ◽  
Megha Gupta ◽  
Kirtti Ranjan Paltasingh
Keyword(s):  
Public Investment ◽  
Private Investment ◽  
Household Savings ◽  
Real Rate ◽  
Jel Codes ◽  
Macroeconomic Uncertainty ◽  
Long Run ◽  
Private Investments ◽  
Short Run ◽  
Nonlinear Autoregressive

The purpose of the study is to re-examine the issue of the crowding-in/out effect of public investment on private investment by adopting an improved methodology of the ‘nonlinear autoregressive distributive lag’ (NARDL) model. Taking data from 1970 to 2016, the study finds that public investment crowds-in private investment both in the long-run as well as the short-run. However, the short-run elasticity is statistically more significant and larger in magnitude than the long-run elasticity. It has also been found that macroeconomic uncertainty significantly affects private investment both in the long-run and the short-run. Among other determinants of private investment, we observe foreign direct investment (FDI) inflow, credit flow to the private sector, household savings, real rate of interest and expected output affect private investment significantly. The policy implication of the study calls for the designing of public sector policies that enthuse more private investments. More credit flow to private sectors and FDI in different sectors of the economy should be prioritized. JEL Codes: E22, H54, C32

scholarly journals PUBLIC, PRIVATE AND FOREIGN INVESTMENT NEXUS IN THE REPUBLIC OF NORTH MACEDONIA: CROWDING-IN OR OUT EFFECT?

2021 ◽  
Author(s):  
Vesna Garvanlieva Andonova ◽  
◽  
Keyword(s):  
Public Investment ◽  
Private Investment ◽  
Annual Data ◽  
Crowding Out ◽  
Foreign Direct Investments ◽  
The Public ◽  
Distributed Lag ◽  
Private Investments ◽  
Short Run ◽  
The Government

In the last two decades the economic growth of North Macedonia can be qualified as sluggish and volatile. In this period, the government has been proclaiming a narrative of fiscal and economic policies focused on public investment driven development and growth, yet the capital budget bias, has been significant with regularly overestimated plans vs. the outturn. The public investment-to-GDP ratio, has been an average 5.47%, ranging from minimum 4.0% (Y2007) to maximum 6.7% (Y2010). Simultaneously, the private investment-to-GDP ratio has been an average 17.1%, with minimum of 15% (in Y2005) and a maximum value of 20.6% (in Y2008). The FDI inflows, have been ranging from minimal below 1% in 2014 to maximum 12.7% in 2001, with average of 4.6% per annum. The trends of the variables straightforwardly do not suggest a nexus between public and private investments i.e. causing crowding-in or crowding out effect. In this paper it is investigated whether public investment and foreign direct investments crowd-out or crowd-in the private investment in North Macedonia. To test this hypothesis, we use the available annual data on private investment, public investment, foreign direct investments and GDP for the period of 2000-2017 (in real terms). A model of autoregressive distributed lag bound testing is used for the variables private investment, public investment, GDP and foreign direct investment. The results indicate a crowding-out effect of public over private investments with significance of the foreign direct investments are expected to show whether there is crowding-in or -out effect of the public over private investment and crowding-in effect of the foreign direct investments. The crowding-out effect is immediate and short run.

Regarding issues of the concept of venture investment of innovative activity

2021 ◽  
pp. 30-35
Author(s):  
Hanna Sitchenko
Keyword(s):  
Venture Capital ◽  
Early Stage ◽  
Civil Law ◽  
Innovation Activity ◽  
High Tech ◽  
Negative Consequences ◽  
Venture Investment ◽  
Current State ◽  
Law Regulation ◽  
Legal Entities

Problem setting. The current state of scientific researching the issue of venture investment of innovation activity suggests that the presence of mixing in research of diverse concepts in the field of venture investment innovation, reflection in regulations of the uncoordinated categorical definitions, leads to negative consequences in the form of legal uncertainty or even conflict, that significantly slows down the process of attracting investment. Therefore, the idea is that the building effective mechanisms of civil law regulation of venture investment of innovation activity of Ukraine in order to accelerate the commercialization of innovations as a major driving force of economy during the spread of COVID-19. Analysis of recent researches and publications. O. M. Vinnyk, S. O. Vikhrov, S. V. Hlibko, T. S. Hudima, Y. M. Zhornokuy, D. V. Zadykhaylo, O. YU. Kampi, O. P. Podtserkovnyy, V. V. Poyedynok, V. Y. Polatay, O. E. Simson have been researched the subject of innovation and investment activities. Theirs scientific minds formed the basis of this research, but the author has analyzed the current state of legislation in the given field and concluded that, in terms of civil law regulation of legal relations aimed at investing in innovation sphere, does not meet the global vector of development. To date, no systematic approach to building a holistic regulatory framework for the basic principles of formation and regulation of the venture capital market in Ukraine. So in the conditions of legislation of civil law the issues of venture investment of innovation activity in Ukraine remains open for new discussion, and the relevance of this study is obvious. Target of research is to analyze and identify the concept of venture investment of innovation activity, to determine its essence and characteristics in the civil law aspect. Article’s main body. Venture capital investment, as an element of the national innovation system, ensures the effective implementation of venture capital in the activities of private legal entities operating in the field of innovation, on a corporate or contractual basis. The high risks of such investment are due to the novelty of commercialized innovations and the early stage of bringing new high-tech products to market, created on their basis, and are reduced using of special legal forms and tools. Venture investment of innovation activity as a civil law category is a type of activity of venture investors to acquire shares (shares in the authorized capital) of legal entities of private law, carrying out innovative activities at an early stage of bringing their innovative product to market or (and) its scaling, aimed at obtaining a high level of profit from the subsequent sale of these shares (shares), characterized by high risks and long-term return on invested capital. Conclusions and prospects for the development. Analysis of the concept under this research allows us to conclude that venture investment of innovation activity is special value to the economy nowadays, demonstrating high growth potential during the spread of COVID-19. Therefore, its legal definition and legislative consolidation, taking into account the essence and characteristics, is a particularly urgent need for today's civil law regulation.

scholarly journals Crowding-Out Effect Of Public Investment On Private Investment: An Empirical Investigation

2012 ◽  
Vol 10 (5) ◽  
pp. 269 ◽  
Author(s):  
Altin Gjini ◽  
Agim Kukeli
Keyword(s):  
Imperfect Competition ◽  
Public Investment ◽  
Emerging Market ◽  
Panel Data Analysis ◽  
Private Investment ◽  
Crowding Out ◽  
European Continent ◽  
Market Economies ◽  
Western Countries ◽  
Private Investments

This studys principal objective is to analyze the behavior of private investments in market economies in the New Emerging Economies (transition economies) in Eastern Europe. The main objective is to investigate the effect of public investment on private investments. Borrowing from neoclassical economics authors one expects to see a crowding out effect of public investment on private investments. The literature is divided and mixed at best at answering the question of what is the role of public investment in private investments. Our preliminary results show that while it can be true that there is a crowding out effect on private investment from public investments in the West, this is not the case looking at the East. There is a vast discussion on the effect of public investment on private investment at the firm level as well as aggregated at the country level. Among other factors recognized for such a discussion like uncertainty, imperfect competition, effectiveness, cost of capital that can bust or hinder private investment under the normal course of the countrys economy this study looks at another angle. Western countries are diverse in terms of the size of government. The new emerging market economies on the East are struggling to get their economies to compete with western countries which have inherited better public institutions, infrastructure, and market conditions overall. A pool of selected countries, unbalanced panel data analysis, in Eastern European continent is examined over a period of time 1991-2009. The data are obtained from World Development Indicators (World Bank data base, 2010). Using pooled cross sectional analysis, the data confirm the structural break of private investment behavior between developing and developed countries. This is due to lack of market economy institutions, infrastructure, performance of the economy, and expectations.

RESEARCH ON INVESTMENT AND INNOVATION ACTIVITY IN UKRAINE: TRENDS AND PROBLEMS

2018 ◽  
Vol 1 (01) ◽  
pp. 5-73
Author(s):  
Anatoliy Ivanovich Bogdanenko
Keyword(s):  
State Policy ◽  
Innovation System ◽  
State Regulation ◽  
The State ◽  
Innovation Activity ◽  
Legal Principles ◽  
Innovation Activities ◽  
Wide Range ◽  
Intellectual Potential ◽  
Innovation Processes

In the monograph the theoretical identification of concepts and categorical series of state regulation of investment-innovation processes are investigated; the directions of optimization of the state policy of innovation and investment development management in Ukraine are determined; the organizational and legal principles of the state regulation of development of intellectual potential of the population are substantiated; the areas of development and improvement of the national innovation system as an object of state policy are highlighted and assessed. The monograph will be interesting for scholars, lecturers, doctoral and graduate students, and will also be useful to practical politicians, journalists and media workers and a wide range of readers interested in investment and innovation activities.

Development of Innovation System in Bioinformatics Using Blockchain Platforms

2022 ◽  
Vol 12 (1) ◽  
pp. 0-0
Keyword(s):  
Big Data ◽  
Innovation System ◽  
Digital Technologies ◽  
Unstructured Data ◽  
Innovation Activity ◽  
Situational Analysis ◽  
Regional Innovation ◽  
Innovation Development ◽  
Russian Economy

It is reasonable to use digital technologies to organize and support an innovation system that simplify and promote interactions between innovation activity participants by performing a situational analysis of big volumes of structured and unstructured data on innovation activity subjects in the regions. The aim of the article is to substantiate the essence, peculiarities and features of integrating blockchain platforms with Big Data intelligent analytics for regional innovation development. The study was carried out as based on materials describing the development of this concept both in the whole world and its spread in the Russian economy.

scholarly journals APPROACH TO MEASUREMENT AND PRACTICE OF EVALUATING AN INNOVATIVE POTENTIAL OF REGIONAL SYSTEMS

2019 ◽  
Vol 2018 (2) ◽  
pp. 21-25
Author(s):  
Анна Сазонова ◽  
Anna Sazonova
Keyword(s):  
Innovation System ◽  
Innovation Process ◽  
Innovation Activity ◽  
Organizational System ◽  
Technology Industry ◽  
Innovation Potential ◽  
Technological Structure ◽  
Innovative System ◽  
Innovative Potential ◽  
Definition Of

The national innovation system is one of the main mechanisms for restructuring the Russian economy. The implementation of innovations, the active development of the science and technology industry creates the necessary conditions and prerequisites for the transition of the economy to its new technological structure, providing an innovative type of economic growth. In recent years, the literature has developed many approaches to the definition of the concept of “innovative potential”. Some authors consider this category as a set of resources and capabilities of the system to create and implement innovations. Others define innovative potential as a measure of the region’s readiness to create and promote innovations. The third group of authors treats innovation potential as a result of innovation activity, identifying in some way the concept of “innovation potential” and “innovation process”. This article discusses approaches to the definition of a comprehensive indicator of innovative potential. The assessment methods considered in this article allow to determine the level of innovative potential of an organizational system, to perform a comparative analysis of systems according to a generalized indicator of innovative potential and its components, and also to develop programs for the development of organizational systems taking into account the effective use of innovative system capabilities.

scholarly journals MEGATRENDS OF DEVELOPMENT OF GLOBAL INNOVATION NETWORKS

2018 ◽  
pp. 93-106 ◽  
Author(s):  
N. Rylach
Keyword(s):  
Open Innovation ◽  
World Economy ◽  
Large Scale ◽  
Innovation System ◽  
Innovation Systems ◽  
Innovation Activity ◽  
Modern World ◽  
Innovation Networks ◽  
National Innovation Systems ◽  
Global Innovation

Under the megatrend, we mean large-scale technological, economic, social, political changes that occur slowly, but in the long run, when they are rooted, they substantially and permanently affect most of the processes in society. Such relative stability in the trajectory of the main forces of change can predict some elements of medium and long-term future changes. The article investigates such megatrends of the development of global innovation networks as the structural nature of the global innovation system, the development of systemic interconnections in the field of innovation, the interaction of national innovation systems and global, the internationalization of innovation activity, and the paradigm of "open innovation". The methodological principles and structural elements of the concept of the national innovation system are determined in the paper, the connection of national innovation systems with the phenomenon of internationalization of the innovation sphere is explored. The theoretical principles of the phenomenon of internationalization of innovation activity are investigated, as well as the preconditions for the emergence of the concept of "open innovation" and its current trends have been established. The concept of open innovation is an important precondition for the emergence and functioning of global innovation networks. The paper analyzes the genesis and specificity of the phenomenon of global innovation networks, outlines their structure and dynamics. It has been determined that global innovation networks play an important role in the development of the modern world economy, as they stimulate international cooperation in the innovation sphere, transfer of knowledge to the world economy and general scientific and technological development and growth of world production.

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