Approaches to Evaluate the Effectiveness of the Institutions of Innovative Environment
Keywords:innovative environment, the effectiveness of institutions, transaction costs, complex effect of the transaction, entropy, Prospect Theory
AbstractPurpose of the research: to study the problem of evaluating the effectiveness of innovative environment institutions, and to define the possible approaches to build a methodology for assessing the effectiveness. Methods: Basing on the analysis of the basic purpose and usefulness of economic institutions, we identified three main components of the effectiveness of institutions: reduction of the uncertainty factor, gain in time, direct gain in money. The performance of an innovative project is proposed to be split into two groups: input, that is, showing during the development and the implementation of the project and output, that shows at the stage of making a profit. In addition, for the equal consideration of all the three components of the institutions effectiveness we suggest that the parameters of the transaction should be expressed in a three-dimensional coordinate system, where one axis u – is the uncertainty, the second axis t – the time and the third axis m – the cash flow. Findings: The calculations revealed that for an implementation of an innovative project, a start-up firm requires either a long-term loan or a venture capital funding or a placement in a technopark. For large and medium-sized firms the project is more attractive to a medium-sized company, because on the background of its performance indicators the effect is not blurred, as against the profits of a large firm. This confirms the effect of short-sightedness of large firms. Conclusions: Carrying out such a comparative assessment of the effectiveness helps to explain the seemingly strange unpopularity of certain innovative environment institutions in the Russian context. Also, on the basis of this method we can try to predict the demand for some kinds of institutions being imported from a foreign practice or implemented in a process of designing the institutes.
ORIGINAL SCIENTIFIC ARTICLE