Methodology of evaluation of innovative potential of enterprises

• Main Authors: Iryna Yepifanova, Viacheslav Dzhedzhula
• Format: Article
• Language: English
• Published: Institute of Eastern European Research and Consulting 2020-09-01
• Series: Agricultural and Resource Economics
• Subjects: innovation capability; desirability coefficient; harrington’s function; human resources; scientific and technical potential; financial and economic potential.
• Online Access: https://are-journal.com/index.php/are/article/view/343

Purpose. The purpose of this article is to form a methodology for assessing the innovative potential of agricultural engineering enterprises using the Harrington’s desirability function. Methodology / approach. The general scientific and special methods of economic theory and management theory are methodological basis of the work. The paper uses an abstract-logical method – for the logical formation of the main aspects and conclusions of the study; methods of mathematical modeling, including expert ones and Harrington’s method – to assess the level of innovation potential of agricultural engineering enterprises. Results. Approaches to defining the essence and components of innovation potential are generalized. Indicators to determine the innovation potential are systematized. The scientific-and-methodological approach to assessing the level of innovation potential based on the generalized Harrington`s criterion is proposed, which allows generalizing various criteria and factors that determine the innovation potential of the enterprise, transfer them into a dimensionless scale and calculate the criterion of desirability – the level of innovation potential. The gradation of values of the desirability function depending on the values of the function is proposed. The innovative potential of agricultural engineering enterprises of Vinnytsia and Khmelnytsky regions was assessed according to the proposed method. Originality / scientific novelty. The scientific novelty of the work is in improving the scientific-and-methodological approach to assessing the level of innovation potential, which, unlike existing approaches, involves the definition of innovation potential as a generalized coefficient of desirability, which depends on human, financial, economic, scientific-and-technical potential, taking into account their mutual influence. Practical value / implications. The results of the study allow a more comprehensive assessment of the level of innovation potential of the enterprise and identifying areas of its growth in the formation of sources of financial support for innovation.