+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Economic Analysis: Theory and Practice
 

Methods to assess the efficiency of investments in industrial design of structural materials

Vol. 14, Iss. 26, JULY 2015

PDF  Article PDF Version

Received: 20 May 2015

Accepted: 20 May 2015

Available online: 21 July 2015

Subject Heading: EVALUATION OF INVESTMENT PROJECTS

JEL Classification: 

Pages: 2-12

Lyubushin N.P. Voronezh State University, Voronezh, Russian Federation
lubushinnp@mail.ru

Nazarov V.G. Epsilon, Research and Production Center, Nizhny Novgorod, Russian Federation
scweld@list.ru

Kalinin G.Yu. Prometey, Federal State Unitary Enterprise, Central Research Institute of Structural Materials, St. Petersburg, Russian Federation
victorm@crism.ru

Importance The article considers the issues of determining the expediency of investment in innovation, namely, industrial design of structural materials. The investment requires considerable resources at all stages, including laboratory researches and subsequent pilot commercial development and industrial design of the technological process for manufacturing constructions from the developed materials, taking into account all necessary modifications.
     Objectives The study aims at defining the threshold value of the discount rate, at which investment in innovation requiring considerable time for creation and material input is economically feasible.
     Methods
The methodology draws upon the concept of systems' life cycle, which develops under CALS-technologies. The developed methodology employs the methods and techniques of investment analysis and other types of analysis, like comparison, analogy, expert evaluation.
     Results
We provide an example of calculating cash flows based on the simulated curve of life cycle of the new construction steel instead of an expensive alloy. We also offer a method for calculating a financial equivalent of the use of new characteristics of the developed materials to determine the financial performance of the simulated life cycle curve.
     Conclusions and Relevance The study shows that in the event of long implementation (more than ten years), the life cycle is defined by the area, which is limited by the life cycle curves of the investment project, depending on discount rate values. Despite a high level of project profitability, investments at over 23% discount rate cannot be considered as feasible. The lower rate of discount results in quite satisfactory life cycle indicators.

Keywords: investment, innovation, structural materials, life cycle, discount rate, efficiency

References:

  1. Glaz'ev S.Yu. Ekonomicheskaya teoriya tekhnicheskogo razvitiya [Economic theory of technical development]. Moscow, Nauka Publ., 1990, 232 p.
  2. Fridlyander I.N. Vospominaniya o sozdanii aviakosmicheskoi i atomnoi tekhniki iz alyuminievykh splavov [Memoirs about creating aerospace and nuclear technology using aluminum alloys]. Moscow, Nauka Publ., 2006, 287 p.
  3. Endovitskii D.A., Lyubushin N.P., Babicheva N.E. Resursoorientirovannyi ekonomicheskii analiz: teoriya, metodologiya, praktika [Resource-oriented economic analysis: theory, methodology, practice]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2013, no. 38, pp. 2–8.
  4. Petukhov P.M. Otsenka effektivnosti promyshlennogo proizvodstva: metody i pokazateli [Assessing the efficiency of industrial production: methods and indicators]. Moscow, Ekonomika Publ., 1990, 95 p.
  5. Ekonomicheskoe obosnovanie proektnykh reshenii: posobie dlya konstruktora-sudostroitelya. Spravochnik [Economic feasibility of design solutions: a guide for a shipbuilder designer. A reference book]. Leningrad, Sudostroenie Publ., 1990, 216 p.
  6. Sukharev O.S. Ekonomika tekhnologicheskogo razvitiya [Economics of technological development]. Moscow, Finansy i statistika Publ., 2008, 480 p.
  7. Lyubushin N.P., Babicheva N.E., Korolev D.S. Ekonomicheskii analiz vozmozhnostei tekhnologicheskogo razvitiya Rossii (na primere nanotekhnologii) [Economic analysis of opportunities for technological development of Russia (the nanotechnologies case)]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2012, no. 9, pp. 2–11.
  8. Babicheva N.E. Teoretiko-metodologicheskie osnovy ekonomicheskogo analiza razvitiya organizatsii na osnove resursnogo podkhoda: monografiya [Theoretical and methodological bases of economic analysis of organizations’ development based on the resource-oriented approach: a monograph]. Moscow, FINANSY i KREDIT Publ., 2012, 256 p.
  9. Kleiner G.B. Resursnaya teoriya sistemnoi organizatsii ekonomiki [The resource-based theory of the systems organization of the economy]. Rossiiskii zhurnal menedzhmenta = Russian Management Journal, 2011, vol. 9, no. 3, pp. 3–28.
  10. Kuznetsov Yu.A. Matematicheskoe modelirovanie ekonomicheskikh tsiklov: fakty, kontseptsii, rezul'taty [Mathematical modeling of economic cycles: facts, concepts, results]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2011, no. 17, pp. 50–61.
  11. Metodicheskie rekomendatsii po kompleksnoi otsenke effektivnosti meropriyatii, napravlennykh na uskorenie nauchno-tekhnicheskogo progressa [Methodological recommendations for integrated assessment of effectiveness of measures aimed at accelerating scientific and technological progress]. Available at: Link. (In Russ.)
  12. Endovitskii D.A. Analiz i otsenka effektivnosti investitsionnoi politiki kommercheskikh organizatsii: metodologiya i metodika [Analysis and assessment of investment policy efficiency of commercial organizations: methodology and techniques]. Voronezh, Voronezh State University Publ., 1998, 286 p.
  13. Metodicheskie rekomendatsii po otsenke effektivnosti investitsionnykh proektov [Guidelines for assessing the investment project efficiency]. Moscow, Ekonomika Publ., 2000, 421 p.
  14. Vaisblat B.I., Lyubushin N.P. Otsenka riska nesostoyatel'nosti organizatsii [Assessing the risk of organizations’ insolvency]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2013, no. 42, pp. 2–10.
  15. Avdonin B.N., Khrustalev E.Yu. Metodologiya organizatsionno-ekonomicheskogo razvitiya naukoemkikh proizvodstv [The methodology of organizational and economic development of knowledge-intensive industries]. Moscow, Nauka Publ., 2010, 367 p.
  16. Lyubushin N.P. Ekonomicheskii analiz [Economic analysis]. Moscow, YUNITI-DANA Publ., 2010, 575 p.
  17. Arkhipov V.M., Emel'yanov A.M. Otsenka sotsial'noi stavki diskontirovaniya [The evaluation of a social discount rate]. Finansy i kredit = Finance and Credit, 2006, no. 17, pp. 49–55.
  18. Kamnev I.M. Kontseptual'nye podkhody k obosnovaniyu stavki diskontirovaniya [Conceptual approaches to justifying the rate of discount]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2012, no. 20, pp. 8–15.
  19. Morozova T.V. Raschet normy diskonta [Calculating the discount rate]. Bukhgalterskii uchet = Accounting, 1996, no. 3, pp. 61–62.
  20. Sheluntsova M.A. Otsenka diapazona znachenii sotsial'noi stavki diskontirovaniya dlya razlichnykh sfer obshchestvennogo sektora ekonomiki [Estimating the range of social discount rate values for different areas of the public sector of the economy]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2010, no. 42, pp. 34–40.

View all articles of issue

 

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 23, Iss. 3
March 2024

Archive