A method of assessing the capacity of industrial enterprises of the region for financial self-sufficiency of innovative activity

Innovation management and finance

In a tense international situation and sanctions from some Western countries there is a clear need to increase the level of innovative development of enterprises of the industrial regions of the country. One of the main reasons for low innovation activity is the shortage of funds for implementation of innovative projects, which is especially pronounced during the economic crisis. The aim of the study is to develop a method of assessing the financial capabilities of the industrial enterprises of the region to provide innovative activities that promote the adoption of science-based solutions in the field of management of innovative development. To achieve the intended purpose, it is proposed to use a special method of assessing the financial resources of the company that includes assessing the current financial condition of the company and its innovative investment activity with arranging the analyzed indicators into a comparable form on the basis of expert scoring method of assessment and determining the level of financial funds for the implementation of innovative projects on the basis of the authors’ interval scale assessment. We developed standard guidelines for the management of innovation in accordance with the financial capabilities of the enterprise. The proposed algorithm was tested on the example of the Vyksa Steel Works JSC; we determined the financial status and innovative-investment activity of the enterprise. Practical application of the developed algorithm of assessment of financial opportunities at different stages of implementation of the innovative project will contribute to the timely commercialization and the formation of long-term competitive advantages of the enterprise. As a result of the study, conclusions are made about the problems that may arise in the enterprises during the analysis of possibilities of financial sustainment of innovation.