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Lecture EE. Innovations.doc
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5

Lecture

Innovations

1. Essence of innovations, basic|main| indicators|metric| of their effect and efficiency

The competitiveness of any enterprise depends on the validity of the scientific and technical|scitech| policy carried out by it|politics|, scale, the efficiency of developing|elaboration| and mastering innovations.

The innovation is the purposeful change|variating| of scientific and technological|scitech| base|baseline| of the enterprise; goods produced;|discharge||production| labor articles used; technological processes;|Carbro| energy sources; the qualification of working people; methods of manufacturing organization; logistical support and sale, directed|ducted| for the achievement of strategic aims, obtaining useful|benefit| economic, social ecological results.

The following|downstream| types of innovations at the enterprise are singled out:

Products innovations|production|;

Technological innovations (use|utillizing| of more economical|lean-burn| instruments of labor, progressive technological processes|Carbro|);

Innovations of used materials|fabric|, raw material;

Innovations of manufacturing organization and administrative (managerial) activity;

Innovations of labor force.

The enumerated types of innovations are closely associated|interreated|.

The basis|backing| of innovative policy|politics| at the enterprise is composed by the innovations of the produced|discharge| products|production| with taking into account the demands|ENQ| of users|consumer|. The change|variating| of products manufactured|production|, the increase|rise| of their quality and competitiveness is, as a rule, conjugated with the innovations of technological processes|Carbro|, used materials and|fabric| raw material, with the necessity of increasing the qualification of working people, etc.

An important place|seat| is occupied|borrow| by technological innovations. As a rule, it is impossible to master the output of new|firsttime| competitive products without|senza| them. Technological innovations provide|secure| labor productivity, decreasing|lowering| prime cost of products, upgrading|upclassing|, which is instrumental in the increase|rise| of goods competitiveness.

Expenses, related to developing|elaboration|, mastering and using|utillizing| innovations, are divided into capital investments and current ones.

Capital costs are carried out during the limited interval of time, but serve the process of production during a long period. They are often called nonrecurring (one-time) costs.

The composition of capital expenses includes carrying out research and development work, technological and project works|wrk|; development|elaboration| of new|firsttime| products|production| and mastering their production; acquisition, installation and adjustment of equipment|EQP|; reconstruction or construction of buildings; replenishment of the circulating assets; prevention of negative|subzero| social, ecological and other consequences.

Current expenses unlike capital ones take place constantly or after small intervals of time. They reflect the inputs of financial and labor resources for production and realization of products (services) in monetary form, form the prime price.

When carrying out economic evaluation of innovations the concepts "effect" and efficiency" are used. The effect is the useful result, provided with the development and use of innovation, which can be economic, social, ecological, scientific and technical.

The economic useful|benefit| result is expressed|signifying| by the increasing the production of products which are in demand|production|, in increasing|rise| its quality and competitiveness, saving all types of production resources, increasing the public labor productivity.

The social useful|benefit| result shows up in the improvement of working conditions, liquidation of hard physical|physics| work, increase of spare time, elimination of reasons|cause| of professional diseases|pathema| and traumatism, in the increase|rise| of educational and cultural|gracious| level|Y-level| of workers.

The ecological useful|benefit| result is diminishing|reduce| harmful influence of production for the environment.

The scientific and technological|scitech| useful|benefit| result consists in obtaining new|firsttime| knowledge and technical facilities, which provide|secure| the acceleration of scientific and technological|scitech| development. For example|eg|, it takes place in the creation|making| of more perfect and economical|lean-burn| computers.

The economic effect can be estimated most easily out of the enumerated|enumerate| types of effect|appraisal|. The measuring device of economic effect is most frequently the cost expression of guaranteed saving production resources during a certain period and guaranteed profit (general|common| or net one).

In general, the effect indicator|metric| for a certain|definite| period is calculated as exceeding the cost estimation|appraisal| of useful|benefit| results of innovations above|over| expenses, related to the development|elaboration|, introduction|introducting| and use|utillizing| of innovation.

Depending on the stage of the life cycle of innovation, and|but| accordingly|concordantly|, the authenticity|truth| of used information, the expected (prognostic) or actual economic effect is calculated.

Depending on the period of time, for which the calculation|computation| of economic effect is carried out|after|, the economic effect can be annual (average annual) one, total|sum-total| (integral|integrated|) one, defined with|definite| taking into account the factor of time for the life cycle of innovation.

The efficiency of innovations is estimated|evaluate| by the comparison of the provided|secure| positive|staid| results with the expenses, which stipulated these results.

In connection with the fact that for the introduction|introducting| of overwhelming number of innovations capital costs (investments) are required, the term "efficiency of innovations" is often replaced with the|use| term "efficiency of capital investments|enclosure|".

When determining|definition| general|common| efficiency, the result and effectiveness of the introduced|introduct| or planned innovation are calculated. The selection|off-take| of the best variant out of a number of alternative ones is not necessary at this stage. The selection|off-take| of the best variants is needed at the stage of planning, because there is a lot of variants of solving any task|tsk| (the increase|rise| of exactness and cleanness|ligibility| of details processing, the increase of their output volume, etc.). The calculations|computation| of comparative efficiency allow to choose|repackage| the best variants of innovations out of a number|flakey| of alternative ones, to define the result and effectiveness of their introduction|introducting|.

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