THE MECHANISM OF FORMATION OF INNOVATION PROJECTS PORTFOLIO

In the modern economic reality, the role of innovations is unimpeachable. In the Russian Federation, the significant attention is paid to the creating the conditions for the innovative development. Thus, the Strategy of innovative development of the Russian Federation, which determines the goals and objectives of the innovation policy and which is intended to change qualitatively the Russian economy structure is being implemented. The innovative projects are financed at the cost of venture capital. The important feature of venture investment, on the one hand, is the high risk and, on the other hand, is the ability to get the excess profits. Consequently, the investors commonly diversify the risks by forming the portfolio of the innovative projects. Therefore, we have the issue of developing the methods allowing the investor to allocate their capital optimally between the innovative projects.

The paper covers the development of the mechanism of the innovative projects selection based on the integrated assessment. The authors consider the theoretical foundation which is the basis for the proposed mechanism. It includes the method of real options for the evaluation of the project profitability taking into account the risk, and the T. Saaty’s analytic hierarchy process, which allows determining the priorities of the considered alternatives taking into account the criteria significance.

The authors suggest the mechanism of formation of the innovation projects portfolio involving three steps. At the first stage, the project profitability is being evaluated using the real options method adapted for the multi-stage projects. At the second stage, the integrated evaluation of the project is carried out using the analytic hierarchy process. Herewith, the authors predefine the project evaluation criteria including the project’s potential profitability, its duration, and its quality characteristics influencing its implementation feasibility. At the final stage, the projects are being selected with respect to their priority and considering the financing constraints.

The developed mechanism allows the investor to evaluate the expediency of financing the innovation project and to form the optimal innovation projects portfolio.