Subjects of innovation: definition, types, features

Innovation is often perceived as the result of a rare genius. Creating a new solution to an old problem, which is more effective and practical than older methods, is considered to be what only truly gifted people can do.

In fact, everyone can become a subject of innovation. While there are some geniuses from textbooks who work hard every day to create amazing innovations, many of the best ideas come from “ordinary” people who just thought: what can I do to make this process or idea better / easier / faster?

What it is

You do not have to spend a lot of time searching for information to see that the definition of innovation varies greatly.

Here are a few paraphrased selections from an article by Nick Skillikorn based on an interview with 15 innovators. So, in their opinion, innovation is:

• applying ideas that are new and useful;
• maintaining relevance;
• great idea, brilliantly executed and well designed;
• a possible, relevant proposal with a viable business model that is perceived as new and accepted by customers;
• the introduction of new products and services that add value to the organization;
• as long as it includes the “new” and meets the needs of customers, any option is suitable;
• the fundamental way that companies bring lasting value to their customers;
• work that brings new benefits to customers in new markets and radically improves the equation of profitability;
• the implementation of something new;
• the implementation of creative ideas for creating value;
• everything is new, useful and amazing.

In other words, the development of enterprises is impossible without quality transformations.

These transformations can be carried out using the most advanced technology, technology, developing a scientific base. Innovation activity is the interaction of entities, which includes a whole range of various social events (scientific, technological, commercial), which ultimately lead to innovation.

When using technological innovations in its work, the organization is included in the activity and becomes a direct participant in the development of new technological processes. Such activities are aimed at profit and practical use of the results of scientific research or development. Innovation activity is associated with the production of new products or services for a specific area of ​​application and expansion of the market, which is what the subjects strive for.

Types of innovation

Similar activities can be presented in various forms. For instance:

• pre-production developments, which include a change in the technological process of production of a product or service;
• staff retraining;
• standardization and certification of innovative ideas;
• innovative activity of subjects of education;
• acquisition of new technologies;
• marketing activities when releasing new products to the market;
• organization of production, including changes in production methods and procedures and the acquisition of new equipment.

Features

Innovative activity has a number of features:

• The presence of high risks and uncertainty. There is no way to accurately predict the outcome of the innovation process.
• The initial stages of production involve high costs. This explains the high prices for new products, due to which innovations become inaccessible to most consumers, which stops the spread of the new product. This necessitates the development of incentive methods.
• Innovations are filled with the contribution of human intelligence and cannot be created and exist without it. Human capital is the main resource of innovative activity.
• The innovation process is the longest in time of all existing business processes.
• The volatile nature of the designation of the main goal. The result of innovation is unpredictable, so if the originally set goals are not achieved, this does not mean failure of the project. And the creation of new products does not always mean the successful completion of tasks.
• Organizational flexibility for structural change. The successful completion of the innovation project as a whole affects the structure of the industry and the economy of the country, and not just the organization.
• Mechanisms in the processes of innovative activity lead to economic, social and other effects, which practically cannot be formalized.

Subjects and objects of innovative activity

This issue should be given enough attention. The subject of innovation can be any person. The main condition is to participate in the creation of innovations. First of all, entrepreneurship is related to subjects of innovative activity. This is manifested in the fact that entrepreneurs are engaged in improving their product or service, as well as developing methods for promoting their product on the market. Improving the innovative activity of small businesses is a significant part of the commercialization of innovative ideas in any enterprise. This is especially true for those who seek to become a market leader.

In accordance with the law on science, subjects of innovative activity also include persons whose activities are related to scientific research. These include: specialists, engineers, academies.

We can definitely say that certain subjects of innovative activity are:

• State bodies that are actively involved in the regulation of such activities.
• Individuals and legal entities that contribute to its development.
• Non-governmental organizations that represent and protect the interests of producers and consumers.
• Innovation Infrastructure Organizations.

Organizations-subjects of innovation are presented in the table below.

Subjects and objects of innovative activity have various tasks and functions. Subjects can act as investors, executors or customers of innovative projects, programs, technologies, with the necessary resources and depending on strategic goals.

The objects

The objects of innovation are everything that has anything to do with any kind of innovation. An important part for which such an activity exists is to bring a scientific idea or technology to practical use.

Basically, the objects of innovation are in the form of an innovative project. This project is a whole complex of regulatory documents that defines the algorithm and types of all necessary measures for the development and implementation of a new product or idea. The project is recognized as innovative, which describes all the stages of creating such a product until implementation. A new product may be presented in the form of work, method, product or service.

The objects of innovation can be:

• programs and projects;
• intellectual property objects;
• new knowledge;
• the latest technology;
• research results, experiments;
• trademarks, names, products;
• production equipment and processes;
• external environment of production and entrepreneurship;
• organizational and technical of various nature, which lead to the improvement of the organization or social sphere;
• raw materials, their extraction and processing.

Rights of subjects

There are rights of subjects of innovative activity, compliance with which is guaranteed by the authorities of the Russian Federation and local self-government. In accordance with these rights, entities:

• They have free access to information on completed research work, on state priorities in the innovation industry.
• Have access to innovative projects to be implemented.
• They receive financial support in a certain amount of innovative projects for state orders.
• They receive assistance in further training and retraining of employees involved in such activities.

The relations of subjects of innovative activity are regulated by the agreement concluded between them. The procedure and procedure for concluding contracts, as well as the choice of subjects for cooperation, are determined by the Civil Code of the Russian Federation and other regulatory legal acts.

Enterprises

One of the main subjects of innovation is the enterprise. It is at such an enterprise that new products are developed, researched, and tested. Each such enterprise sells innovative products depending on the specifics and goals of its functioning. It can work and provide services in the form of a technopolis, an innovative center, a business incubator, etc.

Technopolis is a large scientific and industrial complex that combines science, technology, entrepreneurship and collaborates with government bodies, research centers and universities. Technopolis is engaged in the production and development of new advanced technologies.

The science and technology park is a whole complex combining research centers, manufacturing factories, laboratories. All centers are created on the territory of various universities with developed infrastructure.

The main activity of the technopark is the implementation of investment and innovative projects, including the introduction of technological and scientific developments, ensuring the competitiveness of products in world markets.

Business incubators are considered the fastest and most cost-effective centers for introducing innovative products. The main activity of the business incubator is aimed at supporting small business. The center provides access for those who want to create their own business to everything they need.

One of the most active subjects of innovation organizations is venture capital enterprises. They are engaged in scientific research, introduce new technologies. The main activity of venture enterprises is aimed at providing financial support for innovative projects.

Governmental support

In order to develop the Russian economy, increase the competitiveness of domestic goods and the quality of life of the population, promote services and products on the world market, state support is offered to subjects of innovative activity. Support is provided in accordance with federal law, as well as on the basis of regulatory legal acts.

State support is available to small and medium-sized enterprises at all stages of innovation.

In order to receive state support, it is necessary to meet a number of conditions:

• To carry out innovative activities in the field specified in the law.
• The costs of experimental and design work should be at least 0.6 percent of the total profit of product sales.

The state provides support to the subjects of innovative activity in the following ways:

• financial assistance;
• the provision of subsidies to cover part of the costs of creating innovative products;
• granting loans at favorable conditions and a minimum interest rate;
• providing information support in the media;
• participation in conferences, seminars, discussions related to the development of innovation;
• other types of support under the authority of state authorities.

Government support methods

The state regulates innovation through direct and indirect methods.

One of the ways of direct regulation is the financing of innovative projects, which is carried out from budgetary funds. The effectiveness of this method is enhanced by the presence of competition. Budget places are allocated by competition. There are special funds for this task.

Initial demand for innovation is created by government contracts for research and development, as well as orders for innovative products. Moreover, project financing comes from budget funds.

The creation and maintenance of innovative infrastructure also occupies a central place in supporting such activities. The state is exploring the role and place of new technologies, is engaged in forecasting science and technology not only in the country, but also beyond its borders, creates centers for the provision of services to subjects of innovation, is an active participant in the formation of the market for new ideas.

The state contributes to the formation and training of personnel to manage such processes.

One of the methods of supporting innovative activity is gratitude, which is expressed in the presentation of awards, conferring ranks, organization and providing the opportunity to participate in major government events, etc.

Indirect methods of state support for innovations to a lesser extent affect the process of such activities, but they also require significantly lower financial costs when compared with direct financing, but they can cover a much larger number of innovative entities.

One common method is tax incentives.

Support for innovative activities of business entities is carried out through tax incentives for property and land. In Russia, enterprises, research centers and educational institutions with an innovative base, which are approved annually by the government, are not taxed.

As a benefit for income taxes, a reduced rate is introduced, tax payments are deducted, and preferential taxation is implemented through a reduction in the tax base. These methods are carried out by assigning the costs of innovation to the costs of production activities, which also include reconstruction work, equipment upgrades, and production expansion.

The tax base is reduced when conducting their own research work.

In Russia, such a method of supporting innovative activities as the exemption from VAT of research projects carried out at the expense of budgetary funds, as well as extrabudgetary funds created to support innovation, is widespread. Also there is no VAT:

• Research and development work of educational institutions based on a business agreement, equipment used for science;
• foreign goods and equipment, to which an agreement is attached with foreign enterprises on joint innovative work;
• Printing, printing, publishing for the manufacture and transportation of innovative products.

Output

Innovation is not a one-time event, but an ongoing process. Innovations are able to unite several market segments, use equipment in various industries, and develop the country's economy. And the main feature is that anyone who is ready to create new solutions can become the subject of innovation.