Equity Capital in the System of Financial Support of Enterprise Innovative Activity
Journal Title: Проблеми економіки - Year 2016, Vol 2016, Issue 3
Abstract
The aim of the article is to analyze equity capital in the system of financial support of industrial enterprises’ innovative activity and determine directions of increasing the efficiency of its use. The work considers the essence of financial support of innovative activity. There studied enterprises introducing innovations in the EU and Ukraine, the share of domestic expenditure on R & D in the GDP. It has been determined that the European countries have significant gross domestic expenditure on R & D, which in most countries has positive dynamics of growth. The funding sources of domestic enterprises’ innovative activity have been analyzed. It has been found that the innovative activity of domestic enterprises is funded primarily by means of equity capital, which is caused by the high cost of bank credits, the lack of access to government funding, the low percentage of investors’ funds. The components of equity capital that can provide for financial support of innovative activities have been identified. For the successful implementation of innovative activity by means of equity capital enterprises should use not only such traditional sources as amortization charges and retained profit but also such component of equity capital as the staff. In addition enterprises should increase their equity capital through cooperation, mergers with other enterprises, formation of IFGs.
Authors and Affiliations
Iryna Yepifanova
Keywords
Related Articles
- EP ID EP159739
- DOI -
- Views 119
- Downloads 0
Confidence as Key Factor of Partnership in Business
Transition to market economy inevitably involves reformation of relations between organizations. In this connection the role of confidence in new interrelations grows. The factors capable of strengthening this confidence...
Formation of the advertising budget of the enterprise in the course of marketing communications
The science research is approached to substantiation the advisability of using the existence methods of enterprise advertising budget defining on the base of recognizing criteria of choice optimization.
Peculiarities of Fixed Assets Accounting after January 1, 2015
The aim of the article is to study the peculiarities of regulatory and legal support of fixed asset accounting, which involves the further harmonization of accounting with tax accounting, gradually approaching the intern...
Improving Assessment Tools of Investment Attractiveness of the Company in Accordance with Modern Market Challenges and Changes of the Applicable Law
The aim of the article is to adapt the methodology of investment attractiveness evaluation due to changes in laws and regulations governing the preparation of the financial reporting forms, and improvement of the evaluat...
Managing institutional dynamics: generalisation of modern approaches
The article presents a critical analysis and systematisation of modern approaches to state management of development of institutional structures. It identifies the most popular approaches to management of institutional d...