VENTURE FINANCING IN THE SYSTEM OF MANAGEMENT OF INNOVATIVE PROCESSES

Authors

  • Olena Vasylivna Ilina Kyiv National Economic University named after V. Hetman
  • Vladyslav Yuriiovych Ilin PIHE “Khmelnytskyi Economical University”

Keywords:

Key words, venture financing, venture funds, sources of financial support, innovations, innovation activity, management, financing.

Abstract

Ilina O.V., Ilin V.Yu. VENTURE FINANCING IN THE SYSTEM OF MANAGEMENT OF INNOVATIVE PROCESSES

Purpose. The aim of the article is to analyze sources of financing of innovative processes of domestic enterprises, due to dynamics of financing of innovative activity, to organize the grouping of sources of financial support of innovative processes and to determine the place of venture financing in their structure.

Methodology of research. The research is conducted on the basis of the use of monographic, abstract and logical, historical methods. The methodological basis for the study of material is the dialectic method of cognition of social and economic phenomena. The methodical provision of an individual enterprise or investment project is determined by the subjects of investment activity, that is, the methods and norms developed by them independently according to their own requirements and goals.

Findings. The article deals with the structure of the financial support of innovation activity, with the main emphasis on the study of financial resources, which play a key role in ensuring the innovation process. The sources of financing of innovative processes are determined according to three categories: own funds, attracted funds, borrowed funds. The dynamics of financial support of innovation activity in Ukraine, based on the total expenses, namely, own funds, the state budget, foreign investors and other sources, is analyzed.

Originality. It is proved that each source of financial support has certain advantages and disadvantages, but to involve in the implementation of an investment project, the most advantageous option is required in accordance with the financial analysis of the enterprise. The largest share in the total financing of firms' activity is equity, therefore the availability of free financial resources at the enterprise plays a decisive role in increasing production capacity.

Practical value. Forfeiting, investment leasing, investment selling, venture capital and business angels have been identified as progressive sources of investment attraction. At present, the indicator of formation of a new level of innovation development model is the attraction of venture financing as a priority source of financial support in innovative processes. Venture investors are extremely at risk with their own investments that an investment project is not being implemented, but the probability of obtaining a surplus profit justifies risks.

Key words: venture financing; venture funds; sources of financial support; innovations; innovation activity; management; financing.


Author Biographies

  • Olena Vasylivna Ilina, Kyiv National Economic University named after V. Hetman
    cand.sc.(econ.), associate professor at the department of management
  • Vladyslav Yuriiovych Ilin, PIHE “Khmelnytskyi Economical University”
    assistant at the department of accounting and finance

References

Ilin, V.Yu. and Ilina, O.V. (2016), Konkurentospromozhnist ahrarnykh pidpryiemstv na investytsiino-innovatsiinykh zasadakh v umovakh hlobalizatsii [Competitiveness of agrarian enterprises on investment-innovation principles in the conditions of globalization], monograph, Vyd-vo “Noulidzh” (Sievierodonetske viddilennia), Sievierodonetsk, Ukraine, 497 p.

Antoniuk, L.L., Poruchnyk, A.M. and Savchuk, V.S. (2003), Innovatsii: teoriia, mekhanizm rozrobky ta komertsializatsii [Innovation: theory, mechanism of development and commercialization], textbook, KNEU, Kyiv, Ukraine, 394 p.

Korolova-Kazanska, O.V. (2010), “Sources of financing of innovative enterprise projects”, Ekonomichnyi analiz, iss. 5, pp. 280-283.

Palchevych, H.T. (2012), “Sources of financial support for innovation activities and mechanisms for their involvement”, Naukovi pratsi Kirovohradskoho natsionalnoho tekhnichnoho universytetu, Ekonomichni nauky, no. 18, vol. I, pp. 23–26.

Polinkevych, O.M. (2011), “Sources of financing of innovative processes at industrial enterprises”, Ekonomichnyi forum, no. 3, pp. 52-57.

Levytska, S.O. and Poliukhovych, M.D. (2017), “Sources of Innovation Financing in Ukraine”, Naukovi zapysky Natsionalnoho universytetu “Ostrozka akademiia”. Seriia “Ekonomika”: naukovyi zhurnal. Ostroh: Vyd-vo NU«OA», no. 4(32), pp. 55–58.

Poruchnyk, A.M. and Antoniuk, L.L. (2000), Venchurnyi kapital: za rubizhnyi dosvid ta problemy stanovlennia v Ukraini [Venture capital: for foreign experience and problems of becoming in Ukraine], monograph, KNEU, Kyiv, Ukraine, 172 p.

Stadnyk, V.V. and Yokhna, M.A. (2006), Innovatsiinyi menedzhment [Innovation management], Akademvydav, Kyiv, Ukraine, 464 p.

State Statistics Service of Ukraine, available at: http://www.ukrstat.gov.ua. (access date February 01, 2019).

The Verkhovna Rada of Ukraine (2012), The Law of Ukraine “About innovation activity” dated 16.10.2012 № 5460-VI, available at: http://zakon4.rada.gov.ua/laws/show/40. (access date February 01, 2019).

Antipov, O.M., Kalinesku, T.V. and Koretska-Harmash, V.O. (2009), Upravlinnia venchurnym finansuvanniam pidpryiemstv [Management of venture financing of enterprises], monograph, Vyd-vo SNU im. V. Dalya, Luhansk, Ukraine, 276 p.

Downloads

Published

2019-12-25

Issue

No. 1-2 (2019): INNOVATIVE ECONOMY

Section

Financial–сredit and monetary policy

License

Open-access articles (open-access journals)

Authors whose articles are published in open-access retain all rights to the content of the articles.

Open access articles are committed to be published under Creative Commons Attribution (CC BY) 4.0. This license allows others to distribute, edit, correct and build upon your work, even commercially, as long as they indicate your authorship. Detailed information at Creative Commons site: https://creativecommons.org/licenses/by/4.0/

Permissions for open-access journals

If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 (which was possible till the 15th of December, 2018) licenses, users may reproduce it in accordance with their terms.

Additionally, if the article had been published under CC BY-NC 4.0 (this license authorizes others to download your works and share them with others as long as they indicate your authorship, but they can’t use them commercially in any case.), the use for the following commercial purposes requires permission:

– reproduction of content in a work or product intended for sale;

– reproduction in presentations, brochures or other marketing materials used for commercial purposes;

– distribution of the content to promote or market a person, product, course, service or organization;

– text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;

– use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;

– linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.

For further details and permission requests, please contact.

How to Cite

“VENTURE FINANCING IN THE SYSTEM OF MANAGEMENT OF INNOVATIVE PROCESSES”. INNOVATIVE ECONOMY, no. 1-2, Dec. 2019, pp. 206-11, https://inneco.org/index.php/innecoen/article/view/117.