THE CONCEPT OF REAL OPTIONS AS AN INNOVATIVE METHOD OF ASSESSING THE EFFECTIVENESS OF INVESTMENT PROJECTS IN INDUSTRY

Abstract

The paper deals with problems of application of the concept of real options as the new innovative method of assessing the economic effectiveness of investment projects in industry sector. Critical review of works of foreign and Russian researchers is given. The author's approach to assessing the effectiveness of innovative projects in the industry sector with the introduction of the real options method is proposed and tested. The author's step-by-step algorithm of evaluation is described. Proposed methodology is tested on real innovative project, implemented in the Russian Federation and financed by the venture capital fund. The paper demonstrates that the value of the compound call option increases the overall value of the project due to the factor of staged investment and a possibility to stop financing, that is, due to a higher flexibility in making managerial decisions. The efficiency of using the real options method when applied to the evaluation of the effectiveness of innovative projects by a venture capital investor is shown. In general, the use of the real options method extends the tools used by the venture capital investor in making decisions on project investments.

Keywords

• инвестирование
• инвестиционный проект
• инновационный проект
• венчурные инвестиции
• концепция реальных опционов
• investment
• investment project
• innovative project
• venture capital investment
• concept of real options