Model of Financial Incentives for Innovation Activity in Industrial Sector: Development and Forecasting of Efficiency

Abstract

The article presents the key provisions of the developed model of financial incentives for innovation activity for companies in the industrial sector. The subject of the study is economic relations formed in the process of financial incentives for innovation activity of industrial companies. The aim of the study is to present the authors’ model of financial incentives for innovation activity in the industrial sector, as well as to evaluate its effectiveness using forecasting methods. The relevance of the study is due to the existence in modern conditions of significant obstacles to financial incentives for innovation in the industrial sector: the lack of equity capital of companies, sufficiently high costs for the implementation of innovation projects, the existence of financial risk of loss of solvency by the company, as well as a lack of budget financing of innovation and state material support. The novelty of the research consists in the development of a model of financial incentives for innovation, which could be used in practice by companies operating in the industrial sector in order to increase production potential through the implementation of innovation and R&D projects. The authors apply the following methods: statistical analysis, correlation and regression analysis, forecasting, scenario analysis and construction of the trend of the GDP of the Russian Federation. Results: the authors define the structure of the modern model of financial incentives for innovation activity for industrial companies, evaluate its effectiveness using the interdependencies between the GDP of the Russian Federation and key parameters reflecting the increase in innovation activities of Russian entrepreneurship. Statistical data for forecasting the GDP of the Russian Federation were collected for the period 2010–2021. The authors conclude that the most effective scenario for the Russian innovation economy is the practical use of the developed model of financial incentives for innovation activity in highly active and mediumactive companies.