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Financial Analytics: Science and Experience
 

Changes in approaches to funding of innovative programs and projects in the modern world

Vol. 9, Iss. 29, AUGUST 2016

PDF  Article PDF Version

Received: 16 May 2016

Received in revised form: 30 June 2016

Accepted: 25 July 2016

Available online: 16 August 2016

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: G24, H81, О31, O38

Pages: 2-13

Mel'nikov R.M. Russian Presidential Academy of National Economy and Public Administration, Moscow, Russian Federation
rmmel@mail.ru

Importance The article studies the current transformation of the mechanism for financing of research programs and innovative projects in the world at the present stage.
Objectives The article aims to identify the trends in approaches to funding of innovative programs in technologically advanced countries, identify best practices, and develop proposals to improve the Russian innovation policies in the light of international practice.
Methods The study uses a comparative analysis of tools and sources used abroad for financing research and innovation programs. It helps to identify the advantages and disadvantages of projects, as well as to identify the most promising mechanisms and their potential application in Russia.
Results I found that reserves to improve the financing of innovation in Russia are associated with the development of the regulatory system of equity crowdfunding, as well as the precarious state of guarantee coverage for debentures of the authorized venture capital funds at the later stages, taking into account the United States' experience, e.g. the SBIC program.
Conclusions and Relevance The existing in Russia imbalance in R&D funding necessitates the concentration of State budget means for the financing of fundamental research and minimizing the risk of crowding out private investment in research and development. The proposed expansion of the resource base for financing innovation includes the establishment of a mechanism for leveraged finance of venture capital funds at the later stages under State guarantees involving pension funds, as well as a system of supervision of the crowdfunding activities.

Keywords: funding, research, public support, venture investment, equity crowdfunding

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