Issues of justifying innovative solutions in the market of equipment for the electric power industry

Abstract

The paper is devoted to theoretical, methodological, and practical issues of justifying innovative solutions in the commercialization of innovations in the market of equipment for the electric power industry. The market of innovations for the electric power industry in the Russian Federation requires an increase in the number of solutions on the market despite the fact that it has only recently begun to take shape. Taking into consideration the fact that the life cycle of innovations in the market of electric power industry equipment is longer than in other industries (from one and a half years and more), high risks for investors are formed due to the fact that a substitute product for an innovative project may appear in the market during this time. The main problem is concentrated in the array of selection of startups at early stages and bringing them to the "Finished product" stage. The relevant task of the study is to develop a methodology for justifying commercial decision-making in selecting innovations at the early stages of the innovation life cycle. A methodological approach to justifying innovative projects in the electric power industry was developed and justified. This methodological approach is based on the construction of a structural and functional model of project evaluation, which includes a comprehensive criterial evaluation of qualitative (parameters of the business model of a project, indicators of the quality management system) and quantitative (investment, income and expenditure, as well as the resulting economic) indicators of a project. The concept of "life cycle stages of an innovative product" was explained as an important part of the process of evaluating the effectiveness of innovative projects. An algorithm for the selection of innovative projects in the electric power industry was developed in order to improve the quality of project selection and reduce the time needed for the selection process, which, in turn, should increase the interest of private investors in financing innovative projects in the electric power industry.