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Innovation management

Innovation management (rather new term in the scientific-administrative sphere) is an autonomous branch of administrative science and professional activity aimed at formation and provision of any company’s innovation development.

The word innovation derives from the Latin word “innovare” (“renovation”). The English word and definition “innovation” is terminologically equivalent to our “introduction of something new” or “introduction of novations”.

As the modern economy of Ukraine is oriented at growth of competitive abilities, activation of innovative activities has got the strategic importance now. It enables the country to carry out progressive structural changes, largely renovate the real sector and, in general, to provide the stable social and economic development.

Ukraine possesses the powerful scientific potential that is the nation’s treasure. The biggest problem is implementation of intellectual ideas and their commercialization from intangible to tangible assets.

The further development of Ukraine, chances to take the niche in the European union and world depend, first of all, on mastering the innovative model of the economic growth.
From this viewpoint, innovation management should be considered as the management system that actively influences businesses, innovations, investments, society and economy, policy development of both a specific organization and the country in whole.

Development of innovation management is closely related to “emancipation” of a person and changes in communicative methods, while novation creation becomes the subject of a free moral and emotional choose of a person.

Therefore, innovation management is a system of economic, motivational, organizational and legal measures, methods and forms of innovative activity administration of a specific subject to management aimed at obtaining economic results of this activity in the best way.

The criteria of innovation processes efficiency are economic indexes defining benefit-cost ratio. Here profit and yield are not the target but the important condition and result of innovative activities performance – creation of new products, technologies, services affecting the people’s living standards. .

From there, the essential goals of innovation management should be:
1) provision of long-term functioning of innovation process based on the effective organization of all its components and systems;
2) creation of competitive innovative products, technologies in the most effective way.