ESSENCE AND SPECIFICS OF VENTURE INVESTMENT INTO INNOVATION ACTIVITY

Abstract

Abstract. On the basis of the analysis of scientific approaches and practical application, the authors have concluded that venture investment of innovation activity is a type of entrepreneurship based on the ability of an entrepreneur to accumulate investments from various sources, which is focused on the practical use of technical and technological innovations that are assessed as highly profitable, and which is aimed at fulfilling scientific and technical projects that have not been tested in practice, as well as at improving existing ones in order to exercise intellectual property rights and make a profit and (or) other effect (benefits). It has been noted that the analysis of the essence of venture investment of innovation activity at the current stage of the development of the National Innovation System, suggests that inter-temporal changes of public investment growth, which should act as an institutional magnet, are much greater than the dynamics of private investment. One of the key problems of the modern Ukrainian model of the development of venture industry, which is implemented at the state level, is the imbalance between public and private investments, which must be promptly eliminated. The temporary lack of private investments in Ukraine has been so far successfully replaced by public investments, but it is necessary to create a stable market for both private Ukrainian and foreign venture capital for the effective implementation of the global strategy of building an innovative economy. The authors have substantiated the position that the process of venture investment into innovation activity consists of two stages: 1) invention and development of the object of venture investment and 2) implementation and realization of the obtained result into production, services sector, etc. The specified stages can be combined or considered separately depending on the specialization and (or) specifics of the venture company. An approach to the recognition of two most common forms of venture investment into innovation activity has gained the development. These forms are: 1) investment into corporate capital of companies and 2) investment loans. However, both of these forms are often used simultaneously in practice. The essence of venture investment into innovation activity abroad compared to Ukraine, is the identity of the ultimate purpose of venture and innovative entrepreneurship, which is to make a profit through the industrial introduction of advanced technologies (materials, products, production methods, etc.), despite the fact that methods and means to achieve this purpose are different. Thus, sources of investment of venture entrepreneurship are diversified in different countries from purely private (through specially created structures) to a combination of private and public investment resources. It has been substantiated that venture investments are currently the most affordable alternative to loan financing. One can confidently state that this form of investment is the most profitable for the recipient company, because the previous experience of investors always has a positive effect on a venture company. Keywords: venture entrepreneurship, innovation activity, an investor, investment, venture capital, corporate capital. JEL Classification D92, E22 Formulas: 0; fig.: 0; tabl.: 0; bibl.: 11.

Keywords

• venture entrepreneurship
• innovation activity
• an investor
• investment
• venture capital
• corporate capital