Mechanisms of Innovation Development at Small Enterprises (illustrated by Volgograd Region) (illustrated by Volgograd Region)

Abstract

Small business quickly responds to changing market situation, which brings to economy a certain share of flexibility that fosters solution of employment problem and provides satisfaction of individual needs through mobilizing personnel and economic resources. Small enterprises present sound competition on regional market and promote scientific and technological progress in general. The partner model of interaction or the system of exchanges among the state, business and ‘third sector' that function apart in social and economic life of integrated society are feasible owing to mechanisms of innovation development. Private knowledge of the innovation enterprise, which is special for each small enterprise taking the leading positions forms elements of the program of innovation development of small enterprise. Specific competence of the small enterprise can provide a competitive advantage for it. The spots of innovation growth at small enterprises that possess sound scientific and technological foundation can generate a certain volume of innovation ideas. The innovation system as an element of production and economic tactics of small enterprise functioning is directly connected with innovation process. The article shows that innovation becomes a basis of long-term economic growth, prospects for their introduction are also pointed out. On the basis of preliminary analysis with due regard to the current economic situation in the country and region the author's variant of systematization of the mechanism of innovation development at small entrepreneurship was put forward.

Keywords

• innovation
• entrepreneurship
• regional economy
• innovation activity