Subjects of innovation: definition, types, features

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Innovation is often seen as the result of a rare genius. Creating a new solution to an old problem that is more efficient and practical than older methods is considered something that only the truly gifted can do.

In fact, anyone can become a subject of innovation. While there are some textbook geniuses 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 is this

You don't have to spend a lot of time searching for information to see that the definition of innovation varies widely.

Here are some paraphrased selections from an article by Nick Skillikorn based on interviews with 15 innovators. So, according to them, innovation is:

• application of ideas,which are new and useful;
• remaining relevant;
• great idea, brilliantly executed and well crafted;
• possible, relevant offer with a viable business model that is perceived as new and accepted by customers;
• Introducing new products and services that add value to the organization;
• as long as it includes "new" and meets customer needs, either option is fine;
• the fundamental way companies deliver consistent value to their customers;
• work that brings new value to customers in new markets and radically improves the profitability equation;
• implementation of something new;
• implementation of creative ideas to create value;
• everything new, useful and amazing.

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

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

When using technological innovations in their work, the organization is included in the activities and becomes a direct participant in the development of new technological processes. Such activities are aimed at making a profit and the practical use of the results of scientific research or development. Innovation activityis associated with the production of a new product or service for a specific application and the expansion of the market, which is what the subjects are striving for.

Types of innovation activities

Such activities can be presented in various forms. For example:

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

Features

Innovation activity has a number of features:

• Presence of high risks and uncertainty. There is no way to accurately predict the outcome of an innovation process.
• The initial stages of production involve high costs. This explains the high prices of new products, which make innovation inaccessible to most consumers, which stops the distribution of a 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 for innovation.
• The innovation process is the most time-consuming of all existing business processes.
• Changeable nature of the designation of the main goal. The result of innovation activity is unpredictable, so if the initially set goals are not achieved, this does not mean the failure of the project. And the creation of new products does not always mean the successful completion of tasks.
• The flexibility of the organization to structural changes. The successful completion of an 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 that are practically not amenable to formalization.

Subjects and objects of innovation activity

This issue should be given sufficient attention. Any person can become a subject of innovation activity. The main condition is to take part in the creation of innovations. First of all, entrepreneurship is related to the 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 to promote 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 aspire to become a market leader.

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

It can be unequivocally said that certain subjects of innovation activity are:

• Government bodies that are actively involved in the regulation of such activities.
• Individuals and legal entities that contribute to its development.
• Public organizations that represent and protect the interests of producers and consumers.
• Infrastructure organization pioneering activities.

Innovative organizations are presented in the table below.

Region	Structural units
Entrepreneurship	All enterprises whose purpose of creation and operation is to make a profit
State	Non-profit organizations funded and controlled by the government. State organizations (departments, ministries) providing management of innovation processes
Higher education	Research institutes, universities. Organizations that serve higher education
Private, non-profit	Private and individual organizations and enterprises not operating for profit

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

Objects

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

Basically, the objects of innovation act as an innovative project. This project is a whole complex of regulatory documents that defines the algorithm and types of all necessary activities for the development and implementation of a new product or idea. An innovative project is one that describes all the stages of creating such a product up to implementation. A new product can be presented as a work, method, product or service.

The objects of innovation activity can be:

• programs and projects;
• intellectual property;
• new knowledge;
• latest technology;
• results of research, experiments;
• brand names, names, products;
• production equipment and processes;
• external environment of production and entrepreneurship;
• organizational and technical of a different nature that lead to improvementactivities of an organization or social sphere;
• raw materials, their extraction and processing.

Subject Rights

There are rights of subjects of innovative activity, the observance of which is guaranteed by the authorities of the Russian Federation and local self-government. Subject to these rights, subjects:

• Have free access to information about completed research work, about the state's priorities in the innovation industry.
• Have access to innovative projects to be implemented.
• Receive financial support in a certain amount of innovative projects under government orders.
• Receive assistance in advanced training and retraining of employees involved in such activities.

Relations between the subjects of innovation are governed by an 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.

Businesses

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 operation. It can operate and provide services in the form of a technopolis, an innovation center, a business incubator, etc.

Technopolis is a large scientific and industrial complex thatcombines science, technology, entrepreneurship and cooperates with public authorities, research centers and universities. Technopolis is engaged in the production and development of new progressive technologies.

Science and technology park is a whole complex that combines research centers, manufacturing factories, laboratories. All centers have been created on the territory of various universities with a developed infrastructure.

The main activity of the technology park is the implementation of investment and innovation projects, including the introduction of technological and scientific developments, ensuring the competitiveness of products on world markets.

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

One of the most active subjects of innovation organizations are 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.

Government support

In order to develop the Russian economy, increase the competitiveness of domestically produced goods and the quality of life of the population, promote services and products on the world market, a statesupport 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 businesses at all stages of innovation.

To receive government support, you must meet a number of conditions:

• Perform innovative activities in the area specified in the law.
• Expenses for experimental and design work must be at least 0.6 percent of total product sales profits.

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

• financial assistance;
• provision of subsidies to cover part of the cost of creating innovative products;
• provision of loans on favorable terms and 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 public authority.

Methods of state support

The state regulates innovation activity by direct and indirect methods.

One of the ways of direct regulation is the financing of innovative projects, which is carried out from the budget. The efficiency of this method is enhanced by the presencecompetition. Budget places are distributed according to the competition. There are special funds for this task.

The initial demand for innovation is created by government contracts for research and development, as well as orders for innovative products. At the same time, projects are financed from budgetary funds.

Creation and maintenance of innovation infrastructure also plays a major role in supporting such activities. The state investigates the role and place of new technologies, forecasts science and technology not only in the country, but also abroad, creates centers for the provision of services to subjects of innovative activity, and is an active participant in the formation of a market for new ideas.

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

One of the ways to support innovation is gratitude, which is expressed in the presentation of awards, conferring titles, organizing and providing the opportunity to participate in the most important government events, etc.

Indirect methods of state support for innovation have less impact on the process of such activities, but also require significantly lower financial costs compared to direct financing, but they can cover a much larger number of innovative entities.

One common method is tax breaks.

Support for innovative activities of economic entities is carried out with the help of tax incentives for property and land. Not taxed in Russiaenterprises, research centers and educational institutions with an innovative base, which are annually approved by the government.

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

The taxable base decreases when carrying out own research work.

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

• R&D of educational institutions carried out on the basis of a business contract, equipment used for scientific purposes;
• foreign goods and equipment, which are accompanied by an agreement with foreign enterprises on the joint implementation of innovative work;
• printing, printing, publishing activities for the manufacture and transportation of innovative products.

Conclusion

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 isthat anyone who is ready to create new solutions can become a subject of innovation.