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FACTORS OF THE ENTERPRISES’ INNOVATIVE ACTIVITY IN THE REPUBLIC OF KAZAKHSTAN
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FACTORS OF THE ENTERPRISES’ INNOVATIVE ACTIVITY
IN THE REPUBLIC OF KAZAKHSTAN
ГУ «Средняя общеобразовательная школа-гимназия № 9 г. Павлодара»,
г. Павлодар, Республика Казахстан
Internal factors are directed on adjustment and management of innovative activity at the enterprise, external factors promote expansion of innovative activity’s borders. Thus in the conditions favorable for realization of innovations, the center of gravity in the innovative relations is displaced towards the innovative potential of firms-innovators - the internal factors influencing innovative strategy. When external environment of economic system is favorable for innovations, it entirely depends on internal factors of innovative activity. Meanwhile, the innovative potential of the enterprise is represented as set of material, financial, labor, infrastructure, intellectual, information and communication resources .
To the factors causing interaction of the enterprise with economic and social environments belong to external factors:
- use of external sources for support of innovative process’ all phases: from opening and development to commercialization;
- communications with customers, business partners, investors, competitors, research organizations and higher education institutions;
- lobbying of interests in the government institutional institutions.
For small and medium-sized enterprises, as an external factor of development of innovative activity use of an educational transfer, and also consultations has particular importance.
It allows small and medium-sized enterprises special chances to apply more widely the researches which are very limited on volume and development, scarce personnel resources. There are some forms of transfer services:
- distribution and receiving of orders through the substantive and independent research organizations, institutes at universities, etc.;
- collective researches and scientific-research cooperation;
- use of technological databanks and services of the public consulting institutions;
- special literature.
A wide choice of options of innovative projects’ support specially for small and medium-sized enterprises is offered within state programs of development, for example:
- programs of small and medium-sized enterprises’ support in the field of technological transfer;
- providing the help at external innovative consultations (material and non-material character);
- indirect actions for stimulation of researches and development (for example, decrease in taxes);
- direct help on certain technological directions;
- the help at creation of the innovative enterprises.
Within purposeful innovative management it is necessary to estimate various programs of help and to select those what deserve attention and can be suitable for conditions of the concrete enterprise.
The sore point for small and medium-sized enterprises within realization of innovative projects - weakness of financial base - can be resolved thanks to target planning which finds reflection in the corresponding concept of financing. Such enterprises can use the state help or resort to forms of financing of individual share.
Crucial importance has preliminary financial planning with definition of requirements of financial funds on all phases of innovative process to guarantee their providing in the necessary terms.
Internal factors are the essential features of the enterprise distinguishing it from competitors and defining its innovative solvency. To them treat:
- motivated management;
- integration of technological and organizational-administrative innovations;
- high efficiency;
- effective relations with the personnel, its broad involvement in innovative process;
- continuous organizational training;
- effective system of marketing which is carrying out communications with end users;
- management by quality, infrastructure, organizational development .
Internal factors in turn can also be subdivided into two groups.
The first group includes the factors forming system of internal economic relations and ways of interaction with factors of environment. The second group includes the factors characterizing “internal resources” of the organization.
The first group of factors includes:
- form of ownership on capital goods, defining nature of managing subjects’ economic interests, as a whole the intra firm economic relations, including the management relation;
- organizational structure causing mobility of economic system in the process of administrative decisions’ adoption and degree of compliance of these decisions to environment’s influence;
- “the size of organizations”, defining its belonging to category: “small”, “average”, “large” companies;
- the branch accessory characterizing specialization of the company, main objective of its activity, the share and competitiveness in the market.
The size of firm influences its ability to concentrate not only financial, but also human resources for implementation of innovations.
Other things being equal, in case the firm has large size, it has more opportunities for derivation of production resources’ part to the innovative sphere.
The second group of factors includes:
- financial state of the company giving the picture of its financial stability, degree of its dependence from innovations financing’ external sources, its solvency and, as a result, possibility of receiving the credit for implementation of innovative projects;
- scientific and technical potential characterizing possibilities of the organization in the field of research and development;
- production potential characterizing production base of the company, opportunity to make this or that production, capacity;
- personnel potential defining level of professional qualification of the the organization’s personnel, necessary for implementation of innovations.
The tool, which forms system of the internal economic relations and ways of interaction with factors of environment, is restructuring of the enterprises.
Processes of restructuring can have the passive character which is expressing in closing of unprofitable divisions, personnel reduction, reduction of expenses on objects of the social sphere, debt restructuring, etc., and also the active character consisting in introduction of new production and administrative technologies, investments into training, advance on the new territorial markets of traditional production, development of new production and its advance on the market, etc. In scientific literature the number of the directions of restructuring consists product (horizontal and vertical), technical and technological, organizational and administrative innovations .
Product innovations are the most widespread type of the enterprises’ activity in the Republic of Kazakhstan during their restructuring. Essential distinction between innovations in general and product innovations in particular is the source of innovative activity: whether they are carried out by means of imitation, loan of existing technologies or products from other companies, or by means of own researches and development. In one case it is a question of imitation, in the second - directly of an innovation.
The competitive factor provides selection of innovations on the commodity market. At the same time, the competition is an economic environment of the concrete market in which other economic factors interact also.
Between the competition and the innovative relations there is the most close connection. In a sense the innovative relations are competition generation, and results of such relations are the tool in competitive fight.
The competition from other companies acts as the essential factor of stimulation of innovative activity at the enterprise.
So, Yu. Simachev notes the turned of the enterprises innovative activity’s dependence on competition level in the market .
At the beginning, with growth of number of competitors in the market innovative activity increases, and then is stabilized or even falls. The moderate competition promotes acceleration of process of innovations introduction. But with strengthening of competitive fight monetary funds are exhausted, innovative process is slowed down, or it stops absolutely.
The factors stimulating the enterprise innovative activity, are connected with emergence of new requirements and preferences at consumers, reduction of life cycle of goods, increase of knowledge intensity of production.
Horizontal product innovations include such forms of innovative activity as expansion of the range of the goods which are earlier made by the enterprise; creation of new appearance and packing of goods.
It is necessary to carry to vertical product innovations such forms of innovative activity, as: creation of qualitatively new goods; replacement of laid-off outdated production; improvement of made production’s quality; introduction of after-sale service’s new system.
At the horizontal competition growth of innovative activity is a way of occupation of new market niches or fixing on already available niches. At vertical communications innovations are the answer to increase of requirements to suppliers from buyers of raw materials and semi-finished products, or desire of suppliers to provide appropriate level of goods’ advance in the market.
It is necessary to understand process innovations as improvement of used technology or introduction of absolutely new technology, equipment modernization.
Administrative innovations set as the purpose transformation of the company administrative structure, improvement of corporate finance system, and also human resource management.
If the competition is the incentive for innovative activity, the transfer of technologies is the penetration into the company of new ideas in a situation when process of innovations happens by means of copying and imitation. The transfer of more modern technologies is most often realized by horizontal communications between the enterprises. It is a question of simple copying of the new product, new technological process, and also new administrative decisions at the companies operating in the same market, i.e. at the companies-competitors.
For the characteristic of innovative activity it is applied such indicator as the share of the innovative enterprises, i.e. those who masters new production or new technologies. In OECD countries the indicator of the innovative enterprises share in the industry makes 53%. In Kazakhstan this indicator is much less.
It should be noted that innovatively active enterprise in Kazakhstan significantly differs from western, because the western enterprise works in the conditions of the highly competitive market sated with qualitative production. Kazakhstan considerably lags behind the quality standards of the international market. The considerable part of new production is new only in the Kazakhastan market and isn’t competitive, and its finishing to the international standards demands such expenses and efforts which many enterprises can’t afford. In this regard it is possible to allocate three types of the Kazakhstan enterprises depending on character and the scale of innovations .
Type 1 - the innovative enterprises working at the international level. These are mainly large enterprises working for a state order, having rather developed material base and selling the production in the international market.
Type 2 - the innovative enterprises working at level of the Kazakhstan market requirements. There are enterprises which production is intended generally for the Kazakhstan market and only partially selling production abroad. The production base of such enterprises, as a rule, doesn’t reach the international standards, and introduced innovations influence generally improvement of financial position and other parties of work of the enterprises, not production updating.
Type 3 – the enterprises which aren’t carrying out innovations. Unfortunately, now the majority of the Kazakhstan enterprises belong to this type. It is, generally, small and medium-sized enterprises with the outdated material resources, not loaded capacities, not entering a foreign market.
Important factor of innovative activity’s development is labor quality. Higher quality of the labor, being characterized higher education level, qualifications of workers, leads to more effective use of production resources. Exactly educational level reflects creative ability of workers to perceive the new ideas which have appeared in the market. Quality of labor defines ability of firm to carry out own research and development or to copy new products from other firms.
The company using the principles of the being trained organization, becomes an attractive place of work for highly qualified creative specialists, improves the relations with customers and partners. The special role in it belongs to science. Therefore it has to be closely integrated into production, to become the participant of development’s innovative cycle , distribution and use of innovations .
It is possible to judge competitive opportunities on indicators of the market’s relative share, the controllability of the company, speeds of reaction to change of market situation, etc. Technical possibilities are caused by equipment parameters, the technological scheme of production, etc. Especially it should be noted possibilities of organizational culture in advance of innovations and the role of the strong management in creation of such culture.
List of references:
Postalyuk M.P. Influence of different factors of economic system on the innovative relations in the competitive environment//Problems of modern economy. - SPb. 2005. - No. 3(15). - p. 34
Stepanova E.A. Innovative strategy: potential, restrictions, success prerequisites//http://tisbi.ru
Krasnova L.V. Internal problems of management of innovative activity / Krasnova L.V. // Economy problems. Release 5(18) – M.: “Sputnik +” LLC publishing house, 2007. – p. 79
Simachev Yu.V. Directions and factors of reforming of the industrial enterprises//HSE Economic magazine. – 2001. - No. 3. – p. 328
Bizhanova D.E. Macroeconomic analysis of innovative development of Kazakhstan//Sayasat-Policy, 2009. - No. 3. - P. 27.
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