The effect evaluation in innovation management is an important component not only of the process itself, but also a necessary function that should be considered in more detail.
Nevertheless, in the modern theory and practice of innovation management there is still no single concept of evaluating the effectiveness of innovation.
The reason for this scientific and practical problem lies in the fundamental difference between innovation projects and investment projects, for which a single generally accepted system of evaluation based on profitability has been developed.
These differences are as follows:
First, the profitability of many innovations has a postponed strategic character. For example, managerial innovations, such as changes in the organizational structure of the company, takeovers and joint ventures, introduction of new methods of personnel management, transition to new quality management systems, etc., give their results in a large time interval in relation to the period of investment. The profitability of marketing innovations - entering new markets, repositioning of goods, changing the promotion strategy and many others - is rather unforeseeable and can often be evaluated only in the context of the growth of the overall competitiveness of the company.
Secondly, innovation activity is carried out under conditions of uncertainty and increased risk, as the process of project development and implementation is rather long, and the external environment changes very quickly. Therefore, it is difficult for specialists to predict and evaluate at the beginning stage the final result of the innovation.
Thus, it is wrong to project the methods of evaluating innovation and investment, and copy the methods of investment projects to evaluate the effectiveness of innovation.
First of all, it is necessary to find out the types of effect in innovation. No less important is the choice of indicators for calculating one or another type of effect.
Based on the fact that innovation is the most important element in the development of modern production, it is especially important to obtain various types of effect from the introduction of innovations. The evaluation of such an effect is important both for the level of an individual company (organization), and at higher levels of economic management.
Depending on the results and costs that are taken into account in innovation activities, the following types of effect are singled out:
-economic - takes into account all types of results and expenses as a result of innovation activity (profit from licensing, from the introduction of inventions, patents, know-how; increase in sales, increase in labor productivity, increase in stock return, increase in the speed of turnover of current assets, etc.);
- scientific and technical are characterized by novelty, easiness, usefulness, aesthetics, compactness (number of registered patents, increase in the coefficient of automation of production, labor and organizational level of production, increase in the competitiveness of raw materials and the company as a whole);
- financial, which is based on the results of financial indicators;
- resource - shows the impact of innovation on the production and consumption of a certain type of resource;
- social - takes into account the social results of innovation realization (increase in income of workers, increase in the degree of satisfaction of workers' needs, improvement of labor and recreation conditions, quality of life);
- ecological - takes into account the impact of innovations on the environment (noise, electromagnetic field, brightness, vibrations); it is shown in the decrease of emissions, reducing the volume of waste, increasing the environmental friendliness and ergonomics of goods;
-ethnic-cultural - takes into account the by-product of entering a new way of life, as a result of adaptation to rapid changes - new technologies that form the culture of future life, its system of values, new tastes, norms of behavior and attitudes.
In addition, innovation impact performance indicators can be divided along the following lines:
- place of obtaining - at the local (local) and national levels;
- by the purpose of determination - absolute and compared;
- by the degree of increase - one-time and multiplication;
- by the time of accounting of results and costs - estimated period and yearly.
The local effect characterizes the result of innovation activity at the level of the enterprise or other economic entities.
The national effect describes the overall effect in the field of production and use of innovations.
The absolute effect characterizes the overall result that the company receives from innovative measures in a certain period of time.
The compare effect characterizes the results of comparing possible alternatives of innovative measures and selecting the best of them.
One-time effect characterizes the overall result (primary) that the company receives from innovative activities.
Multiplier effect characterizes the results of innovation activity, which covers not only companies, but also other industries, as a result of whose activities the multiplier effect occurs, that is, its multiplication.
The duration of time, which is taken into account when calculating the innovation effect in the calculation period, depends on such factors as:
-term of innovation;
-the period of use of the object of innovation;
-the degree of certainty of the source of information;
-the requirements of investors.
The general principle of evaluating the effectiveness of innovation activity is to compare the effect (result) from the use of innovations and the costs of their development, production and consumption. The effect from the application of innovations can characterize the rate of profit, which, on the one hand, may consist of savings from cost reduction, and on the other hand - from the increase in prices as a result of the new quality of innovative products.
As noted above, indicators are selected to assess the effectiveness of innovation.
In general, the problem of determining the effectiveness and selection of the most advantageous options for the innovation realization requires, firstly, the excess of the final results from their use over the costs for the development, production and realization of innovation, and secondly, the comparison of the result obtained from this result with the results from the use of other similar options for innovation. Especially the need for rapid evaluation and proper selection of the innovation option is especially critical in companies using rapid amortization, for which it is required to significantly reduce the period of replacement of existing machinery and equipment with new ones.