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The practice to reserve time for employees' pilot projects development as a factor of innovation activity of companies in the Commonwealth of Independent States

Ginoyan A.B. Russian Presidential Academy of National Economy and Public Administration, Moscow, Russian Federation ( mweneli89@gmail.com )

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

Journal: Economic Analysis: Theory and Practice, #9, 2018

Importance The article reviews the impact of time reserve provided to employees for pilot project development on innovation activity of companies operating in the real sector of economy.
Objectives The aim is to evaluate how this practice and its interaction with professional training and formal employee education impacts innovation activity of companies in the CIS member States.
Methods Using the data of survey conducted by EBRD and the World Bank, we estimate average marginal effects of the practice to reserve time for employees to develop pilot projects and its interaction with other characteristics of human resource development on the innovation activity indicator of companies.
Results The findings show that in the CIS countries investments in on-the-job training have a greater effect on innovation activity than those in general human capital during university studies. We found that the practice of providing a time reserve to employees to develop their pilot projects has a greater effect on company's innovation activity compared to professional training.
Conclusions The government should support these practices through subsidies and fiscal incentives. The companies using both of these methods of human resource development achieve a higher level of innovation activity.


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