Importance Nowadays the enterprises producing innovative products have to introduce new methods of enhancing the efficiency of innovation process management in order to maintain competitiveness in the market. These companies require an effective management system to achieve strategic goals through optimal resource utilization and rapid response to internal and external changes. The article deals with budgeting as a progressive system enabling to effectively manage the innovation processes and to achieve strategic business objectives. Objective The purpose of the work is to develop a mechanism of innovation processes budgeting and define the role of labor while building the system. Methods The methodological basis of the research is the works of scientists addressing the theoretical aspects of budgeting as a business management technology. Results The author proposes a definition of "innovation process budgeting" concept, states the objectives and mechanism of innovation process budgeting, shows the role of labor in the process of building the system and the ways to implement innovation budgeting processes in the enterprise. The results of the study are applicable to the enterprises engaged in the development and production of innovative products, which aim at improving the efficiency of their innovation process budgeting. Conclusions and Relevance The author has concluded that budgeting is a progressive system for effective innovation process management as it enables to control budget implementation by comparing the planned and actual performance, to analyze the identified deviations and take necessary management decisions. At the same time, the innovation process budgeting allows creating an effective employee incentive program.
Dogadailo Ya.V. Teoretychni osnovi bjudzhetuvannja na pidpryjemstvi [Theoretical bases of budgeting in a company]. Available at: Link. (In Ukr.)
Kozlovskaya E.A., Demidenko D.S., Yakovleva E.A., Buchaev Ya.G., Gadzhiev M.M. Ekonomika i upravlenie innovatsiyami [Economy and innovation management]. Moscow, Ekonomika Publ., 2012, 359 p.
Sukhinina V.V. Byudzhetirovanie [Budgeting]. Samara, Samara State Technical University Publ., 2008, 120 p.
Shakhovskaya L.S., Khokhlov V.V., Kulakova O.G. Byudzhetirovanie: teoriya i praktika [Budgeting: theory and practice]. Moscow, KnoRus Publ., 2009, 400 p.
Guidelines for Collecting and Interpreting Innovation Data. Oslo Manual, Third Edition. Available at: Link.
