THEME 5: INNOVATIVE FORM OF INVESTMENTS

PLAN.

1.1. The concept of innovation and innovation process.

1.2. Classification of innovations.
1.3. Venture capital and business.
1.4. Types of intellectual property.
1.5. Intelligent Investments. Basic forms of intellectual investments realization
and their financing.

1.1. Concept of innovation and innovation process.

Innovation is an important economic category, which means the process of

introducing a scientific idea into production, and which can significantly increase
income of the investor.

Innovation is the process of bringing a scientific idea or technical invention to the

stage of practical use, which brings revenue, as well as the related scientific and
technical changes in the social environment.

Innovation process is a sequence of events in which innovation rises from idea to

specific product, technology, structure or service and is distributed in economic
practice and social activities.
In general, the model of the innovation process can be displayed:
FR, PR, DaD, M, IP, M, S
FR - fundamental research, AR - applied research, DaD - development and design,
M - mastering, IP - industrial production, M - marketing, S - sales.

1.2.Classification of innovations.
Modern economic theory distinguishes five main types of innovations:

1. introduction of a new product (commodity innovation);

2. introduction of a new method of production (technological innovation);
3. creation of a new market of goods or services (market innovation);
4. development of a new source of supply of raw materials or semi-finished
products (marketing innovation);
5. reorganization of the management structure (managerial innovation).

1.3.Venture capital and business.

US economists J. F. Fenn, N. Layang, S. Praus, P. Johnson define venture

capital as equity financing for innovative small business enterprises with
significant growth potential at the stage of their creation and sales, combined with
consulting support and high the degree of involvement in the decision-making
process.
Venture Entrepreneurship is an activity aimed at implementing "risk" projects,
usually of an innovative nature, for the purpose of obtaining profits.
Venture company is created by a small circle of like-minded people - engineers,
inventors, managers - with certain experience in laboratories of large firms. Under
the form of responsibility and organizational and legal status, venture companies
are divided into three types: corporations, partnerships, individual companies. To
create a company you need three important conditions: the idea innovation (new
product, technology, service); an entrepreneur who is ready based on the idea of
creating a firm; a capital specializing in the financing of small firms.

1.4.You are intellectual property.

Intellectual property can be divided into several types:

1. Exclusive property - patented or copyrighted. Copyright is the personal property
right of the author to his work. Copyrights include documents, works of art,
architecture, maps and drawings, photographs, models, melodies, notes, musical
performances, script, audio and video cassettes;

2. Information - in the form of knowledge, ideas, experience, skills, qualifications.

This property has no legal protection and is implemented in the form of
informational services on a contractual basis in the form of education,
consultations, publications;

3. Licensing - in the form of ownership or use rights acquired by the investor.

1.5.Intellectual investments. Basic forms of

intellectual investments implementation and their financing.

The investor buys intelligent goods and services for the purpose of their use in the
investment activity in the hope of receiving future income - intellectual investment.
They are carried out in the form of:

- purchase of exclusive rights of use - patents, licenses for inventions, industrial

designs, trademarks;
- the acquisition of information services through the recruitment of various types of
specialists-scientists and practitioners under a contract or in the form of one-time
acquisition of information services;

- purchase of scientific and technical products, ie intellectual goods in material

form (design estimates, programs, methods, know-how);

- investments into human capital, ie expenses on education, training and retraining

of personnel, training.

Investment in intellectual property can be financed at the expense of three sources:

budget allocations and funds of state enterprises, private entrepreneurial capital,
sponsorship funds and subsidies of firms or individuals.