Financing innovation is meant to include inter-related elements, consisting in a hierarchical subordination, and specific functional characteristics, as well as sources of funding, monitoring mechanisms, mechanisms of accumulation and repayment of funds advanced in the investment process.As an important summary indicator allowing to determine the final result of activities in the field of innovation, the growth impact of finance in favor of the implementation of innovative projects.
financing innovation in its essence is to attract, use and subsequent allocation of capital as well as to manage the market risk of investments.At its core financial support is reflected in the functional areas of finance sphere impact on innovation from the perspective of the relationship, as the reproduction, distribution and control.If we talk about reproductive function, here we are talking about the fact that financial resources are a stimulus for the movement of investment capital at all stages of circulation of innovative investments.The distribution function is that carried out the formation and use of financial funds to ensure the effectiveness of the capital structure from the perspective of the state of monetary policy in the micro and macro levels, and in terms of the funding requirements of the subject innovation.The essence of a control function consists in monitoring the actual turnover of finance for innovation, and is realized in the form of monitoring the conditions of formation of innovation, innovation financing, as well as the changes in financial indicators, the value of payments, as well as the calculation of the customer and innovative enterprises.The essence of financial monitoring is to identify the relationships between the structure of funds of funds with the intended objectives of innovation and makes adjustments inconsistencies between revenues and expenditures of the initiator of innovation.In addition, the tasks of monitoring is to determine the financing and the environment of hopelessness identify other ways to innovate.
financing innovation identifies the following possible sources of capital: the company's own funds, interested in innovation funds from local, regional and central government, foreign investments, which are presented in the form of financial participation in the authorized capital or other participation, loans from theforeign investors or commercial banks.
Budget financing innovation
Russian federal budget serves as the main instrument of the state science and technology policy, as well as a focal point of a federal system.Through it is the distribution of up to forty percent of the total income of the country, which was received by the owners of means of production.From budget is public funding of many sectors of the economy and public life, whose activities do not protect the commercial sector of the economy because of low profitability.Innovation Projects Financing is provided by the State each year in the formation of the state budget for the relevant sections of the Classification, in particular for the implementation of high-impact projects, placing them on a competitive basis.With funding priority innovative projects the state acts as a kind of business entity.Government's interest in innovation due to the need to carry out fundamental research that is almost run private business due to the long implementation period, as well as the uncertainty of the results and costs of implementation.
