It is calculated by the Central Bank in aggregate and for individual structural elements - the so-called aggregates.

So, for example, the Central Bank of the Russian Federation allocates cash (M0) and different kinds non-cash assets - checks, debit cards, deposits, bonds - designated as M1, M2, M3. In other countries, the M4 aggregate is additionally distinguished: for example, in the UK, it includes government borrowings and loans issued to organizations.

The money supply is one of the instruments of the budgetary policy of the modern state. Exchange trading, factoring transactions, taxation, raising or lowering the refinancing rate - all this directly depends on the amount financial resources in circulation. Their increase may occur due to the influx of foreign investment or additional emission of money due to growth budget spending. The decrease is usually the result of a targeted recovery policy financial system.

The dynamics of the movement of money

The volume of the money supply, as well as the ratio between the various elements of its structure (for example, cash and deposits) varies depending on the economic situation. High growth rates of money in circulation indicate inflation and unfavorable economic conditions. That is why monetarists, who directly link these indicators, advise fighting inflation by reducing the amount of financial resources in circulation (for example, through tax increases or budget cuts).

Due to the cyclical economic development the money supply is always unstable. Convenient tools for assessing growth dynamics are provided by the official website of the Central Bank of Russia. So, for example, as of May 1, 2018, the money supply of the Russian Federation, according to the Central Bank, amounted to 43.127 billion rubles. The highest growth rates were in the sector of cash finance (3.2% compared to the beginning of the year). Deposits in May also grew somewhat (by 1.2%). Basically, due to the deposits of the population (3.1%). At the deposits of organizations in relation to the beginning of the year, on the contrary, there was a decline (minus 1.7%).

Lessons from the European Union

Unjustified issuance of unsecured money only in short term helps cover the government budget deficit. In the long run, this helps to reduce commodity value money and inflation.

That is why the UK since the 1970s. was forced to switch to a policy of drastic cuts in budget expenditures. A striking example is the story of Margaret Thatcher, nicknamed "the milk thief" by her opponents. Eliminating free milk for elementary school students saved the Iron Lady about $19 million. Reducing the cost of social sphere, education and science, according to Margaret Thatcher, was justified, but in society it caused a lot of indignation.

In Germany, too, there was a "narrowing" social functions government to improve the financial system. This was done despite a lot of protests about the increase retirement age and cutting unemployment benefits.

Conclusion

There are many factors in the movement of the money supply: for example, the uniformity of spending, the shadow economy and the informal sector. The state does not always take them into account in full. However, understanding the prospects for an increase or decrease in the money supply at least gives the entrepreneurs and economists themselves an advantage in determining their own economic strategy.

Money supply is the most important indicator of the amount of money in circulation. The money supply includes the total amount of money - cash and non-cash, which is currently in circulation, belongs to various economic entities. In addition to money, it may include other highly liquid financial assets that can be converted into money with minimal loss of time and money. These include, for example, certificates of deposit of large commercial banks, short-term treasury bills, Treasury savings bonds. The order in which they are included in the money supply depends on national characteristics her measurements. Thus, the money supply is a heterogeneous indicator in its structure.

To characterize the structure of the money supply, monetary aggregates are used - M0, M1, M2. monetary aggregate is a statistical indicator that characterizes the volume and structure of the money supply.

With all the variety of methods for statistical accounting of the money supply in various countries, monetary aggregates in the most general view can be represented as follows:

М0- includes currency in circulation (banknotes, metallic coins, and in some countries treasury bills), including cash at the cash desks of banks;

M1- contains the M0 aggregate plus funds in current bank accounts and demand deposits, which can be immediately used either in the function of money as a medium of circulation or as a means of payment;

M2- consists of the M1 aggregate plus fixed-term and savings deposits in commercial banks: funds from these deposits become available to the depositor only after a certain time has elapsed, provided for by the deposit agreement between the bank and its client;

M3- contains the M2 aggregate plus savings certificates in specialized financial and banking institutions;

M4- consists of aggregate M3 plus shares, bonds, certificates of deposit of commercial banks, bills of physical and legal entities, i.e. monetary obligations that take a long time to turn into "live" money.

The delimitation of monetary aggregates is based on the degree of their liquidity, i.e. the possibility of quick, with the least risks and costs, the conversion of various forms of deposits and savings into rapidly realizable funds. Monetary aggregates are ranked according to the degree of liquidity decrease. So the monetary aggregates M0 and M1 characterize the most liquid component of the money supply. They include components that fall under the definition of money supply in the narrow sense of the word. Other aggregates of the money supply include money that is used in settlements with certain restrictions. In their essence, they are rather substitutes, or “quasi-money”.

The qualitative composition of monetary aggregates is ambiguous in different countries, which is due both to the traditionally established theoretical ideas about money, the ratio of cash and non-cash components in the total money turnover, money and financial assets, and the specifics of the monetary system and the methods used to regulate it by the central government. bank. So, in the United States, there are 4 main monetary aggregates in the composition of the money supply:

M1- cash in circulation held outside banks, traveler's checks, demand deposits and so-called other checkable deposits;

M2– Aggregate M1 plus non-checkable savings deposits, term deposits in banks, overnight REPO transactions (buying and selling valuable papers with repurchase-sale), one-day dollar deposits of US residents, funds in mutual fund accounts.

M3- M2 aggregate plus short-term government bonds, term buyout agreements concluded by commercial and savings banks, term Eurodollar deposits of US residents in foreign branches of US banks.

The specificity of the system of monetary aggregates used in the USA is the use of aggregate L, consisting of aggregate M3 plus treasury securities and banker's acceptances placed outside the banking system.

In Japan, central banks use 4 monetary aggregates. However, the widest unit M4 includes, along with cash in circulation, funds on current and term deposits in commercial banks, and also funds invested in one of the types of short-term securities - certificates of deposit.

In France, ten monetary aggregates are used to determine the money supply, in Switzerland and Germany - three, in England - five. Despite the difference in the qualitative composition of monetary aggregates and their different number, in recent years there has been a trend towards the universalization of financial markets, which predetermined the gradual convergence of the composition of monetary aggregates.

Each country that is a member of the International Monetary Fund (IMF) calculates the monetary aggregate M1 according to the methodology developed by the Fund - M1 includes cash and all types of checking deposits. Along with it, a broader indicator of the money supply is calculated - “quasi-money”, that is, urgent and savings accounts of banks and the most liquid financial market instruments.

Money supply in Russian Federation calculated by the Central Bank as of the 1st day of the month based on the consolidated balance sheet of the banking system. The composition of the money supply in Russia includes the following monetary aggregates:

М0- cash in circulation;

M1- consists of the M0 aggregate plus funds on settlement, current and special accounts of enterprises and organizations, on the accounts of local budgets, budgetary, trade union, public and other organizations, plus State Insurance funds, plus deposits of the population and enterprises in banks, plus demand deposits of the population in Sberbank;

M2- consists of the M1 aggregate plus fixed-term deposits of the population in Sberbank;

M3- consists of aggregate M2 plus certificates and government bonds.

Such a definition of the structure of the money supply increases the activity of money circulation management, as it allows you to take into account the degree of pressure of money in each aggregate on the formation of effective demand, and, consequently, prices in the market of goods and services. In the Russian Federation, as the main monetary aggregate used in calculating current macro economic indicators, the aggregate M2 is used.

In any country, the money supply is an object of constant state regulation. The need for such regulation is determined by the fact that the size of the money supply and the rate of its growth affect the state of other economic indicators. So, for example, if the money supply grows much faster than the volume of national production, then with other equal conditions this can lead to inflation. At the same time, the state resorts to additional money emission in order to stimulate economic growth, and in this case, the growth in the amount of money in circulation reduces the cost of loans and contributes to the expansion of productive investment. If the growth of the money supply does not keep pace with the growth in the volume of national production, then the money in circulation at a constant rate of circulation may not be enough to properly service all payments and settlements, and then the uninterrupted operation of the national economy may be called into question. Counterparties will simply have nothing to pay each other with, they will not be able to repay the emerging monetary claims. Moreover, the main debtor, as a rule, will be the state. This is what will keep the money supply from growing.

The amount of money needed for circulation depends not only on the volume of economic turnover in the country, but also on the velocity of money circulation. With the acceleration of the turnover of money, it is possible to serve a greater economic turnover with a smaller amount of money as a medium of circulation and a means of payment.

In addition to indicators of the velocity of circulation of the money supply in the Russian Federation, the following are determined:

The rate of return of money to the cash desks of the institutions of the Central Bank of the Russian Federation as the ratio of the amount of money received at the bank's cash desks to the average statistical mass of money in circulation;

The velocity of circulation of money in cash circulation, which is calculated as the ratio of the amount of receipts and issuance of cash to the average annual mass of money in circulation.

In modern economic literature, a generally accepted concept has been formed about the need to single out among the various types of functional money the so-called strongest money, which means the amount of central bank liabilities in relation to the private sector, reflected in its balance sheet. As a development of the concept of “the most powerful money”, the term “ monetary base”, i.e. the total of those liabilities of the central bank towards the private sector that it has the ability to control. The components of the monetary base are banknotes and coins held by the population and in the cash desks of banks, funds of commercial banks deposited with the central bank in the form of required reserves. In the Russian Federation, a “narrow” and “broad” monetary base is calculated. The concept of a narrow monetary base includes the M0 aggregate (cash in circulation), plus cash in banks' cash desks and banks' required reserves in the Bank of Russia. The broad monetary base additionally includes funds of commercial banks on correspondent accounts with the Central Bank of the Russian Federation. Changes in the structure of the monetary base are characterized by an increase specific gravity cash in circulation, maintaining an almost unchanged share of required reserves with a relative reduction in its other components.

Sources of growth in the monetary base can be both an increase in net international reserves Bank of Russia and the Government of the Russian Federation, as well as the volume of their net domestic assets. In the Russian Federation after 1998, the main source of growth in the monetary base is the increase in net international reserves, which occurs due to the purchase of foreign currency by the Bank of Russia for domestic market and by reducing the debt of the Russian Federation to the IMF. The volume of net domestic assets during this period decreased, mainly as a result of an increase in the balances of funds from budgets of all levels and state off-budget funds in the accounts of the Bank of Russia.

The connection between the monetary base and the money supply is carried out through the mechanism money multiplier. By controlling the mechanism of the bank multiplier, the Central Bank expands or narrows the issuing capacity of commercial banks, thereby affecting the volume of money supply in circulation. The Bank of Russia annually, as part of its monetary policy, sets money supply growth targets, which are calculated taking into account the dynamics of GDP and the possible money supply, are considered as. In recent years, in the Russian Federation, the benchmarks for the growth of the money supply (M2 aggregate) were set as intermediate goal monetary policy. They are determined on the basis of such macroeconomic indicators as the dynamics of GDP and the projected growth in consumer prices in the proposed period. In addition, in the conditions of dollarization of the domestic economy, when forecasting the ruble money supply, it is necessary to take into account the possible movement of funds in the foreign currency accounts of all market participants.

In the process of regulating the volume of the money supply, the purchasing power of money is determined, on which the quality of the performance by money of the function of a measure of value and a means of accumulation depends. Only with a stable purchasing power and stability of the monetary unit, money can be effectively used to measure the costs of all goods, to calculate and compare various economic indicators, assess their dynamics, and also create a reliable basis for regulating the economy by monetary methods. The depreciation of money, the decrease in its purchasing power leads to the fact that as a measure of value in national economy a stable foreign currency is used to ensure price comparability over time. Prices for all goods are set not in national monetary units, but in foreign ones, for example, in dollars. As a store of value, depreciating national money is also being replaced by foreign currency. The population, followed by enterprises and organizations, prefer to keep their savings in foreign currency, most often in dollars. There is a process of "dollarization" of the economy.

The performance of money as a means of circulation and means of payment, of course, also depends on their stability, but to a lesser extent than the other two functions. Experience shows that even with a high degree of depreciation, national money continues to be used as a medium of exchange and a means of payment, since it acts as a "fleeting intermediary", which reduces the losses of settlement participants to a minimum. But at high inflation rates, even a fleeting presence of heavily depreciating money on hand entails tangible losses for their holders. Therefore, in conditions of hyperinflation, money and in the functions of a means of circulation and payment are also being replaced by foreign currency. However, with the relative stability of the purchasing power of money, the quality of their performance of these functions is determined mainly by the efficiency of the payment system.

The term "innovation" comes from the Latin word "innovus" (in - in, novus - new, innovare - to make new) and means renewal or improvement.

In the scientific and legal literature, this term first began to be used in the 30s of the twentieth century, while almost every specialist involved in the study of innovative issues revealed it in different ways. Thus, attempts to define innovations were made by J. Schumpeter, P. Drucker, V. Hippel, V. Kingston and other authors.

AT international practice The version of the definition of "innovation" given in the international standards "Oslo Manual on Invention Statistics and the Collection and Processing of R&D Data" (the "Oslo Manual") has become widespread. According to these standards, "innovation" - final result innovation activities embodied in the idea of ​​a new or improved product introduced to the market, new or improved technological process used in practice or in a new approach to social services.

In Order Federal Service state statistics dated October 30, 2009 N 237 “On approval statistical toolkit for the organization of federal statistical monitoring of activities carried out in the field of science and innovation” contains the following definition of innovation: “Innovation is the end result of innovation activity, embodied in the form of a new or improved product (goods, works, services), production process, new marketing method or organizational method in doing business, organizing jobs, or organizing external relations.”

For the company, innovation is the main means of increasing profits, the ability to create strategic advantages in the most competitive areas, the keys to new markets. For a country, the ability to effectively use innovations means the achievement of such national goals as national security, protection environment, health care, as well as increasing labor productivity, attracting international investment, that is, ultimately, raising the level and improving the quality of life. Governments are betting on innovation when they are trying to overcome a crisis.

Innovation is the end result of innovative activity, which means activities aimed at the use and commercialization of the results of scientific research and development to expand and update the range and improve the quality of products (goods, services), improve their manufacturing technology with subsequent implementation and effective implementation in the domestic and foreign markets innovation activity involves a whole range of scientific, technological, organizational, financial and commercial activities, which together lead to innovation.

The Order of the Federal State Statistics Service dated October 30, 2009 N 237 “On approval of statistical tools for organizing federal statistical monitoring of activities carried out in the field of science and innovation” gives the following definition of innovation activity: “innovation activity is a type of activity associated with the transformation ideas (usually the results of scientific research and development or other scientific and technical achievements) into technologically new or improved products or services introduced on the market, into new or improved technological processes or methods of production (transfer) of services used in practical activities. Innovative activity involves a whole range of scientific, technological, organizational, financial and commercial activities, which together lead to innovation.

In the Policy Guidelines and target program innovation activity is understood as the performance of works and (or) the provision of services aimed at:

• Creation and organization of production of a fundamentally new or with new consumer properties of products (goods, works, services);
• Creation and application of new or modernization existing methods(technologies) of its production, distribution and use;
• · the use of structural, financial, economic, personnel, information and other innovations (innovations) in the production and marketing of products (goods, works, services) that provide cost savings or create conditions for such savings.
• 1.2 Classification and types of innovations

In the practice of innovation management, various classifiers of innovations are used.

According to the type of novelty for the market, innovations are divided into: new to the industry in the world; new to the industry in the country; new for this enterprise (group of enterprises).

According to the stimulus of appearance (source), we can distinguish:

• innovations caused by the development of science and technology;
• innovations caused by the needs of production;
• innovation driven by market needs.

By place in the system (at the enterprise, in the firm), we can distinguish:

• innovations at the entrance of the enterprise (raw materials, equipment, information, etc.);
• innovations at the output of the enterprise (products, services, technologies, information, etc.);
• · innovations of the system structure of the enterprise (management, production).

Depending on the depth of the changes made, there are:

• radical (basic) innovations that implement major inventions and form new directions in the development of technology;
• · improving innovations that implement small inventions and prevail in the phases of distribution and stable development of the scientific and technical cycle;
• · modification (private) innovations aimed at partial improvement of obsolete generations of equipment and technology.

For filling purposes statistical reporting several types of innovations are distinguished, each of which is given its own definition and description, and several types of activities are distinguished that are not unambiguously recognized innovative innovations. Relevant recommendations are contained in the Order of the Federal State Statistics Service of October 30, 2009 N 237 "On approval of statistical tools for organizing federal statistical monitoring of activities carried out in the field of science and innovation", which contains form No. 4-innovation "Information on innovation activity organizations." This form divides innovation into three main types: technological, which in turn includes product and process innovations; marketing innovations and organizational innovations.

Technological innovation - the activities of the organization associated with the development and implementation of technologically new products and processes, as well as significant technological improvements in products and processes; technologically new or significantly improved services, new or significantly improved methods of production (transfer) of services.

Product innovations are the development and introduction into production of technologically new and significantly technologically improved products.

Process innovation - the development and implementation of technologically new or technologically significantly improved production methods, including methods for transferring products.

Marketing innovations - the implementation of new or significantly improved changes in the design and packaging of products, the use of new methods of sales and presentation of products (services), their presentation and promotion to sales markets, the formation of new pricing strategies.

Organizational innovation - the implementation of a new method in doing business, organizing jobs or organizing external relations.

1.3 Innovation process

Sequential chain of events in which an innovation develops from an idea into a specific product, technology or service and is disseminated with the goal of practical application and commercialization is called the innovation process.

The flow of an innovative project is determined by the innovative infrastructure, which includes:

• relevant legal and legislative framework;
• · formed market of scientific and technical products;
• · a network of organizations involved in the commercialization and capitalization of scientific developments;
• · counseling centers;
• information and intermediary services;
• organizations that carry out export-import operations on innovations;
• a network of organizations that carry out engineering, audit, management, coordination and other paid services;
• · scientific and practical personnel, ready to perceive innovations.

The innovation process includes seven elements, the combination of which into a single sequential chain forms the structure of the innovation process.

These elements include:

• 1. initiation of innovation;
• 2. marketing innovation;
• 3. release (production) of innovation;
• 4. implementation of innovation;
• 5. promotion of innovation;
• 6. evaluation economic efficiency innovation;
• 7. diffusion (distribution) of innovation.

The beginning of the innovation process is initiation. Initiation is an activity that consists in choosing the goal of innovation, setting the task performed by innovation, searching for the idea of ​​innovation, its feasibility study and materializing the idea. The materialization of an idea means the transformation of an idea into a commodity (property, a new product, etc.).

After the justification of a new product, marketing research proposed innovation, during which the demand for a new product is studied, the volume of product output is determined, consumer properties and commodity characteristics that should be given to innovation as a product entering the market. Then the innovation is sold, that is, the appearance on the market of a small batch of innovation, its promotion, evaluation of effectiveness and diffusion.

Innovation promotion is a set of measures aimed at the implementation of innovations (advertising, organization of the trading process, etc.).

The results of the implementation of the innovation and the costs of its promotion are subjected to statistical processing and analysis, on the basis of which the economic efficiency of the innovation is calculated.

The innovation process ends with the diffusion of innovation. Diffusion (lat. diffusio - distribution, spreading) of innovation is the spread of once mastered innovation in new regions, in new markets.

Thus, the innovation process is aimed at creating the products, technologies or services required by the market, and its direction, pace, goals depend on the socio-economic environment in which it develops and functions.

Innovation is most often understood as “an investment in innovation”.

Innovation (innovation) is the result of intellectual activity, which is the object of civil law relations, and has the following features: novelty, i.e. new qualities; practical applicability in terms of consumer utility and safety; economic efficiency (competitiveness).

Innovation (innovation) is:

A complete process from an idea to a finished product sold on the market (J. Cook, P. Myers);

The process in which an invention or idea acquires economic content (B. Twiss);

A process that includes such activities as research, design, development and organization of production of a new product, technology or system (D. Messi, P. Quintas, D. Wild);

This is the end result of creative activity, embodied in the form of a new or improved product or technology that is practically applicable and able to satisfy certain needs (A.V. Surin, O.P. Molchanova).

Innovation (eng. innovation - innovation, literally means "investment in innovation") - the end result of innovation, realized in the form of a new or improved product sold on the market, a new or improved technological process used in practice.

Article 2 federal law dated August 23, 1996 No. 127-FZ "On science and state scientific and technical policy":

Innovation - a new or significantly improved product (good, service) or process introduced into use, a new method of sales or a new organizational method in business practice, organization of workplaces or in external relations.

An innovative project is a set of measures aimed at achieving an economic effect for the implementation of innovations, including the commercialization of scientific and (or) scientific and technical results.

Innovative infrastructure - a set of organizations that contribute to the implementation of innovative projects, including the provision of managerial, logistical, financial, information, personnel, consulting and organizational services.

Innovative activity - activity (including scientific, technological, organizational, financial and commercial activity), aimed at the implementation of innovative projects, as well as the creation of an innovative infrastructure and ensuring its activities.

Innovation has three attributes in equal measure:

Scientific and technical novelty,

manufacturing applicability,

Commercial feasibility.

The concept of "innovation" is closely related to the concepts of "invention" and "discovery".

Under invention understand new devices, mechanisms, tools, other devices created by man.

opening it is the result of obtaining previously unknown data or observing a previously unknown natural phenomenon.

Discovery differs from innovation in the following ways:

1) a discovery, like an invention, occurs, as a rule, at a fundamental level, and innovation is carried out at the level of a technological (applied) order;

2) the discovery can be made by a single inventor, and the innovation is produced by teams (laboratories, departments, institutes) and embodied in the form of an innovative project;

3) the discovery does not aim to gain benefits, but innovation is always aimed at obtaining tangible benefits, in particular, a greater influx of money, a greater amount of profit, an increase in labor productivity and a reduction in production costs through the use of a specific innovation in engineering and technology;

4) discovery can happen by accident, and innovation is always the result of scientific research.

Innovative product - the end result of creative work, realized in the form of a qualitatively new or improved product, or a new or improved technological process used in the socio-economic system.

Innovation economy - an economy developing on the parity use of new knowledge and innovative products, readiness for their practical implementation in various fields of human activity.

innovative economic system is a system in which technology is basic foundation its development.

Innovation activity - a process aimed at developing and implementing the results of completed scientific research and development, or other scientific and technological achievements in a new or improved product sold on the market; into a new or improved technological process used in practical activities, as well as additional research and development related to this. This is a complex of scientific, technological, organizational, financial and commercial activities aimed at commercializing the accumulated knowledge implemented in innovative technologies and new equipment. The result of innovation activity is new products (services) or products (services) with new qualities.

In the world economic literature, the term "innovation" is interpreted as the transformation of potential scientific and technological progress into real, embodied in new products and technologies. The problem of innovations in our country has been developed for many years in the framework of economic research of scientific and technological progress.

The term "innovation" began to be actively used in the transitional economy of Russia, both independently and to refer to related concepts: "innovative activity", "innovative process", "innovative solution", etc.

There are many definitions in the literature. For example, they distinguish technical, economic, organizational, managerial innovations, etc.

Various scientists (N. Monchev, I. Perlaki, V.D. Hartman, E. Mansfield, R. Foster, B. Twiss, I. Schumpeter, E. Rogers, etc.) interpret this concept depending on the object and subject of your research. For example, B. Twiss defines innovation as a process in which an invention or idea acquires economic content. F. Nixon believes that innovation is a set of technical, industrial and commercial activities that lead to the emergence of new and improved industrial processes and equipment on the market. According to B. Santo, innovation is such a socio-technical and economic process that, through the use of practical ideas and inventions, leads to the creation of products and technologies that are better in their properties. If an innovation is focused on economic benefits, then its appearance on the market can bring additional income. And Schumpeter interprets innovation as a new scientific and organizational combination of production factors, motivated by an entrepreneurial spirit.

Analysis of various definitions of innovation leads to the conclusion that the specific content of innovation is change, and main function innovation is a function of change.

The Austrian scientist I. Schumpeter singled out five typical changes (1911):

1. The use of new technology, new technological processes or a new market

production support (purchase and sale).

2. Introduction of products with new properties.

3. Use of new raw materials.

4. Changes in the organization of production and its logistics.

5. Emergence of new sales markets.

Later (1930), he introduced the concept of innovation, interpreting it as a change with the aim of introducing and using new types of consumer goods, new production and vehicles, markets and forms of organization in industry.

Sometimes innovation is seen as a process. This concept recognizes that innovation develops over time and has distinct stages.

The methodology for a systematic description of innovations in a market economy is based on international standards (Frascati's guide). The provisions of the Frascati manual are updated periodically, due to changes in the strategy of scientific and technological policy at the national and international levels. Last revision The Frascati Guidelines were adopted in 1993.

In line with international standards innovation is defined as the end result of an innovative activity that is embodied in the form of a new or improved product introduced to the market, a new or improved technological process used in practice, or a new approach to social services.. Indispensable properties of innovation are scientific and technical novelty and industrial applicability. Commercial feasibility in relation to innovation acts as a potential property, which requires certain efforts to achieve.

The terms "innovation" and "innovation process" are close, but not unambiguous. The innovation process is associated with the creation, development and dissemination of innovations .

From what has been said, it follows that innovation should be considered continuously with the innovation process. Innovations are equally inherent in all three properties: scientific and technical novelty, industrial applicability, commercial feasibility.

The commercial aspect defines innovation as an economic necessity realized through the needs of the market. Let's pay attention to two points:

- "materialization" of innovation into new types of products, means and objects of labor, technology and organization of production;

- "commercialization", turning them into a source of income.

In practice, the concepts of "innovation", "innovation", "innovation" are often identified, although there are differences between them.

innovation may be new order, new method, invention. Innovation means that the innovation is being used. From the moment it is accepted for dissemination, an innovation acquires a new quality and becomes innovation .

Therefore, innovation should:

Have novelty;

Satisfy market demand;

Bring profit to the manufacturer.

Consumers do not need a new product, but solutions that offer new benefits. A new product becomes a successful innovation if it meets the following four criteria.

1.Importance . The new product or service must provide benefits that are perceived as meaningful by consumers. For example, developing a new wristwatch that comes with a 100-year accuracy guarantee may be an outstanding technical solution, but will consumers appreciate the proposed benefit as important?

2.Uniqueness . The benefits of the new product must be perceived as unique. If consumers believe that existing products have the same benefits as the new product, it is unlikely to get high marks.

3.Sustainability . A new product may offer unique or important benefits, but if it is easily replicated by competitors, its market prospects are dim. Patents are sometimes a barrier to competition, but in most industries the most effective means of sustaining innovation are a company's agility in the marketplace and strong supplier brands.

4.Liquidity . The company must be able to sell the created product, and for this it must be reliable and efficient; must be sold at a price that consumers can afford to pay; to deliver and support the product, the company must develop an efficient distribution system.