Menu
Close
Innovations Development Platform

Media center

image description Articles
28 October 2016

Relevance of Systemic Development of Innovations

 

 Evgeniy Sarantsov

 Founder of TradeHub and Technology   Companies' Development Center

"Commercialization of scientific research has little to do with scientific developments themselves. It's all about money. It is necessary to separate the science from commercialization, though balancing their relationships. No need to make businessmen of scientists. Leave this matter to professionals."

Republished from Business.ua: http://bit.ly/2osljiL

Innovations should be perceived as a model that accelerates the development of any system. And unlike the development of a system, innovations accelerate not linearly but exponentially. In fact, today this is the only way for existence of a system in principle. Those systems that do not use innovations and do not work with them lose their competitiveness. After all, we live in a world that is changing every day, and rather aggressively. Using innovations is the only way to hold one's ground in the world system.

About defence sector

In this regard, it holds one of the last places. Because the defence sector is as system is actually a monopolist in this market. Competition there is quite low and one must have special permission to engage in this sector. And innovation is its weaknesses and its main risk.

By definition, any closed system or a system in which there is a monopoly, does not require innovation and does not feel this risk. Because generally open systems that are in the market and compete - it is they that feel a hunger for innovation. Therefore, in the short and medium term such systems as Ukroboronprom do not feel any need or discomfort in the absence of innovation. But if we take globally, in the long run this risk is significantly increased and begins to act up in the most inconvenient time.

Global trends for attracting investment in innovative products

We all know the model of venture market, market of investment in projects with high degree of uncertainty. However, this model does not work in Eastern Europe in principle. I believe that this model will be replaced by the models with a shorter horizon - up to three years. This is when you can purchase obligations of innovations planned to be launched in production and can get back your investment within one to three years.

We can say that the global trend is investment with the fastest payback. The market is being accelerated greatly; now it is getting more difficult to take up projects with long liabilities (7, 10, 15 years), because during this time even entire regions can disappear, saying nothing about the stability in the market. It is impossible to predict the plan of strategy for 7 years ahead.

How have global trends changed over the last 10-20 years?

In the 2000's, there was a lot of romance in the investment market. Lots of bubbles, on which someone earned, and someone went bankrupt. Now, the trend is in one simple phrase: stop fairy tales. Let's stop telling each other fairy tales and get closer to reality. The market becomes more conservative, risk tolerance gradually decreases. Everyone looks before leaping.

About commercialization of science

Commercialization of scientific research has little to do with scientific developments themselves. It's all about money. It is necessary to separate the science from commercialization, though balancing their relationships. No need to make businessmen of scientists. Leave this matter to professionals.