Estimation of Economic Efficiency of Innovations

Abstract

The paper substantiates the fact that with high inflation and high-interest credits calculation of annual economic effect due to introduction of the designed innovation variant is better to conduct proceeding not from the sum of the anticipated net profit and investments but taking into account profit increment (or economy of cost) and additional investments in the designed variant being compared with the basic one. Such methodological approach makes it possible to be more objective in estimation of economic efficiency of innovations and decrease the probability to take wrong decisions about expediency (or inexpediency) of innovation investments.