LIQUIDITY LIMITATION INFLUENCE ON INDUSTRIAL COMPANIES’ INVESTMENTS IN INVESTIGATIONS AND DEVELOPMENT AND EFFECTIVENESS OF INNOVATIVE ACTIVITY

Scientific investigations and development of new technologies (ID) benefit society more than the profit the innovator derives. Thus innovation research key point is spillover effect consideration: as far as the other firms will also get off-the-shelf technology access (probably with temporary lag),...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	A. V. Trachuk, N. V. Linder
Formato:	article
Lenguaje:	RU
Publicado:	Real Economics Publishing House 2016
Materias:	bidimentional probit-model innovations investigations and developments liquidity limitation expenses effectiveness of innovative activity financial position Risk in industry. Risk management HD61
Acceso en línea:	https://doaj.org/article/7bd29151c98c45c9b0978cad355d79ba
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:7bd29151c98c45c9b0978cad355d79ba
record_format	dspace
spelling	oai:doaj.org-article:7bd29151c98c45c9b0978cad355d79ba2021-11-19T10:41:59ZLIQUIDITY LIMITATION INFLUENCE ON INDUSTRIAL COMPANIES’ INVESTMENTS IN INVESTIGATIONS AND DEVELOPMENT AND EFFECTIVENESS OF INNOVATIVE ACTIVITY2618-947X2618-998410.17747/2078-8886-2016-1-80-89https://doaj.org/article/7bd29151c98c45c9b0978cad355d79ba2016-03-01T00:00:00Zhttps://www.jsdrm.ru/jour/article/view/543https://doaj.org/toc/2618-947Xhttps://doaj.org/toc/2618-9984Scientific investigations and development of new technologies (ID) benefit society more than the profit the innovator derives. Thus innovation research key point is spillover effect consideration: as far as the other firms will also get off-the-shelf technology access (probably with temporary lag), innovator-enterprise doesn’t receive all the profit from the performed ID. Consequently, a lot of companies are inclined to limit investments in ID, particularly in case of liquidity shortage.The article presents the results of investigation of liquidity limitation influence on the companies’ decision to invest in ID, the amount of investment and the effectiveness of innovative activity. Hard liquidity limitation happens to be, when the company doesn’t have access on capital markets (for example, in connection with financial downfall or property shortage for credit loan guarantee), soft – where feasible to obtain credit, but loanable funds price is higher than profitability of its activity. The direct indicator of credit restriction is used for analyzing, and the economic model which determines interrelation between companies’ decision to invest in ID, the amount of these investments and the effectiveness of innovative activity. Obtained results demonstrate that restrictive financial indicator has positive significant connection with the companies’ decision to invest in ID, and doesn’t influence the amount of these investments in case of positive decision. Thus far from every industrial company decide to invest in ID in virtue of liquidity limitation, but for those who invest the amount of investments doesn’t depend on liquidity limitation. It is explained with the fact that availability of own funds is more important than credit possibilities in accepting the companies’ decision of ID investment.Cash effect is also proved, the effect when a big company has great available assets that makes ID and innovations financing easier, and inverse U-dependence is proved between the market level of competition and innovations.It was concluded that small companies and companies of low-tech branches need investments which simplify imitation of off-the-shelf technologies from developed markets but not the ID intensity increasing.A. V. TrachukN. V. LinderReal Economics Publishing House articlebidimentional probit-modelinnovationsinvestigations and developmentsliquidity limitationexpenseseffectiveness of innovative activityfinancial positionRisk in industry. Risk managementHD61RU Strategičeskie Rešeniâ i Risk-Menedžment, Vol 0, Iss 1, Pp 80-89 (2016)
institution	DOAJ
collection	DOAJ
language	RU
topic	bidimentional probit-model innovations investigations and developments liquidity limitation expenses effectiveness of innovative activity financial position Risk in industry. Risk management HD61
spellingShingle	bidimentional probit-model innovations investigations and developments liquidity limitation expenses effectiveness of innovative activity financial position Risk in industry. Risk management HD61 A. V. Trachuk N. V. Linder LIQUIDITY LIMITATION INFLUENCE ON INDUSTRIAL COMPANIES’ INVESTMENTS IN INVESTIGATIONS AND DEVELOPMENT AND EFFECTIVENESS OF INNOVATIVE ACTIVITY
description	Scientific investigations and development of new technologies (ID) benefit society more than the profit the innovator derives. Thus innovation research key point is spillover effect consideration: as far as the other firms will also get off-the-shelf technology access (probably with temporary lag), innovator-enterprise doesn’t receive all the profit from the performed ID. Consequently, a lot of companies are inclined to limit investments in ID, particularly in case of liquidity shortage.The article presents the results of investigation of liquidity limitation influence on the companies’ decision to invest in ID, the amount of investment and the effectiveness of innovative activity. Hard liquidity limitation happens to be, when the company doesn’t have access on capital markets (for example, in connection with financial downfall or property shortage for credit loan guarantee), soft – where feasible to obtain credit, but loanable funds price is higher than profitability of its activity. The direct indicator of credit restriction is used for analyzing, and the economic model which determines interrelation between companies’ decision to invest in ID, the amount of these investments and the effectiveness of innovative activity. Obtained results demonstrate that restrictive financial indicator has positive significant connection with the companies’ decision to invest in ID, and doesn’t influence the amount of these investments in case of positive decision. Thus far from every industrial company decide to invest in ID in virtue of liquidity limitation, but for those who invest the amount of investments doesn’t depend on liquidity limitation. It is explained with the fact that availability of own funds is more important than credit possibilities in accepting the companies’ decision of ID investment.Cash effect is also proved, the effect when a big company has great available assets that makes ID and innovations financing easier, and inverse U-dependence is proved between the market level of competition and innovations.It was concluded that small companies and companies of low-tech branches need investments which simplify imitation of off-the-shelf technologies from developed markets but not the ID intensity increasing.
format	article
author	A. V. Trachuk N. V. Linder
author_facet	A. V. Trachuk N. V. Linder
author_sort	A. V. Trachuk
title	LIQUIDITY LIMITATION INFLUENCE ON INDUSTRIAL COMPANIES’ INVESTMENTS IN INVESTIGATIONS AND DEVELOPMENT AND EFFECTIVENESS OF INNOVATIVE ACTIVITY
title_short	LIQUIDITY LIMITATION INFLUENCE ON INDUSTRIAL COMPANIES’ INVESTMENTS IN INVESTIGATIONS AND DEVELOPMENT AND EFFECTIVENESS OF INNOVATIVE ACTIVITY
title_full	LIQUIDITY LIMITATION INFLUENCE ON INDUSTRIAL COMPANIES’ INVESTMENTS IN INVESTIGATIONS AND DEVELOPMENT AND EFFECTIVENESS OF INNOVATIVE ACTIVITY
title_fullStr	LIQUIDITY LIMITATION INFLUENCE ON INDUSTRIAL COMPANIES’ INVESTMENTS IN INVESTIGATIONS AND DEVELOPMENT AND EFFECTIVENESS OF INNOVATIVE ACTIVITY
title_full_unstemmed	LIQUIDITY LIMITATION INFLUENCE ON INDUSTRIAL COMPANIES’ INVESTMENTS IN INVESTIGATIONS AND DEVELOPMENT AND EFFECTIVENESS OF INNOVATIVE ACTIVITY
title_sort	liquidity limitation influence on industrial companies’ investments in investigations and development and effectiveness of innovative activity
publisher	Real Economics Publishing House
publishDate	2016
url	https://doaj.org/article/7bd29151c98c45c9b0978cad355d79ba
work_keys_str_mv	AT avtrachuk liquiditylimitationinfluenceonindustrialcompaniesinvestmentsininvestigationsanddevelopmentandeffectivenessofinnovativeactivity AT nvlinder liquiditylimitationinfluenceonindustrialcompaniesinvestmentsininvestigationsanddevelopmentandeffectivenessofinnovativeactivity
_version_	1718420201788145664

LIQUIDITY LIMITATION INFLUENCE ON INDUSTRIAL COMPANIES’ INVESTMENTS IN INVESTIGATIONS AND DEVELOPMENT AND EFFECTIVENESS OF INNOVATIVE ACTIVITY

Ejemplares similares