Innovation – source to obtain the competitive advantage in the global economy

A strong motivation to replace the comparative advantage theory with the competitive advantage theory is given by the significant change of the present economic conditions comparing with the old conditions that inspired the competitive advantage issues. The dynamic character of the market competition and the fact that, in the present, the competitiveness is located to enterprise’s level and not to the level of the national economy are some important argues that sustain the necessity and the opportunity to move the economic thinking from the comparative advantage theory to the competitive advantage theory. In the past, the comparative advantage of an economy was given by the natural resources, by the geographical position or by the specific features of products or services. Nowadays the competitive advantage is created through innovation by all its forms.innovation, comparative advantage, competitive advantage

Financial appraisal of the innovation projects

The main objective of the financial appraisal of an innovation project is to measure the rentability of those projects. The financial appraisal of an innovation project is similary to investment projects at short level. But on the other side, it has certain features due to its main characteristic activities.appraisal, innovation projects, indexes, efficiency

Methods for innovation projects risk evaluation

Starting an innovation project assumes to state some competitive objectives referring to the allocated budget, time limit for project’s ending and also to the quality and performance parameters of the new obtained product. Referring to the innovation project development, the risk of unfulfilling the stated competitive objectives referrers to the exceeding the project’s budget and terms, and also to unfitting in the quality and performance parameters established in the innovation project planning stage. The large diversity of risk sources can be expressed by the possibility of appearance of some unexpected variations of the cost, time and quality of the new products. The innovation projects risk is settled by the variations of the cost, time and quality objectives effective values comparing to the planned values. Those variations are determined by purely random factors. The innovation projects characterized by uniform variations of the cost, time and quality objectives effective values around the mean are considered to be under statistic control. Those projects’ risk may be quantified and the risk impact over the project can be limited. The innovation projects characterized by fluctuant variations of the cost, time and quality objectives effective values around the mean are considered to be out of statistic control. The aim of this paper is to present two categories of statistic methods for innovation projects risk quantifying. The first statistic methods that quantify the risk of unfitting the quantitative objectives referrers to the time risk, cost risk and the risk of unfitting established performance parameters. The second category of methods represents statistic methods that quantify the risk of unfitting the qualitative objectives of the projects – the risk of appearance major quality deficiencies.innovation project, risk evaluation, cost, time and quality objectives

Evaluation method of the innovation project global efficiency

A complete system of indexes to evaluate the global efficiency of a new product development project must approach at least the following perspectives: the financial performances of the project; the project's value; the technical performances of the project; the efficiency of research and development activities of the project; the capacity of fitting in the estimated cost and duration of activities; the degree of integration between the R&D and production activities; the degree of integration between the R&D and marketing activities. Therefore, in this paper is drawn up a method for new product development projects evaluation, based on those seven perspectives.innovation project, evaluation method, value, financial performances

Innovation – source to obtain the competitive advantage in the global economy

A strong motivation to replace the comparative advantage theory with the competitive advantage theory is given by the significant change of the present economic conditions comparing with the old conditions that inspired the competitive advantage issues. The dynamic character of the market competition and the fact that, in the present, the competitiveness is located to enterprise’s level and not to the level of the national economy are some important argues that sustain the necessity and the opportunity to move the economic thinking from the comparative advantage theory to the competitive advantage theory. In the past, the comparative advantage of an economy was given by the natural resources, by the geographical position or by the specific features of products or services. Nowadays the competitive advantage is created through innovation by all its forms

Innovation – source to obtain the competitive advantage in the global economy

A strong motivation to replace the comparative advantage theory with the competitive advantage theory is given by the significant change of the present economic conditions comparing with the old conditions that inspired the competitive advantage issues. The dynamic character of the market competition and the fact that, in the present, the competitiveness is located to enterprise’s level and not to the level of the national economy are some important argues that sustain the necessity and the opportunity to move the economic thinking from the comparative advantage theory to the competitive advantage theory. In the past, the comparative advantage of an economy was given by the natural resources, by the geographical position or by the specific features of products or services. Nowadays the competitive advantage is created through innovation by all its forms

Methods for innovation projects risk evaluation

Starting an innovation project assumes to state some competitive objectives referring to the allocated budget, time limit for project’s ending and also to the quality and performance parameters of the new obtained product. Referring to the innovation project development, the risk of unfulfilling the stated competitive objectives referrers to the exceeding the project’s budget and terms, and also to unfitting in the quality and performance parameters established in the innovation project planning stage. The large diversity of risk sources can be expressed by the possibility of appearance of some unexpected variations of the cost, time and quality of the new products. The innovation projects risk is settled by the variations of the cost, time and quality objectives effective values comparing to the planned values. Those variations are determined by purely random factors. The innovation projects characterized by uniform variations of the cost, time and quality objectives effective values around the mean are considered to be under statistic control. Those projects’ risk may be quantified and the risk impact over the project can be limited. The innovation projects characterized by fluctuant variations of the cost, time and quality objectives effective values around the mean are considered to be out of statistic control. The aim of this paper is to present two categories of statistic methods for innovation projects risk quantifying. The first statistic methods that quantify the risk of unfitting the quantitative objectives referrers to the time risk, cost risk and the risk of unfitting established performance parameters. The second category of methods represents statistic methods that quantify the risk of unfitting the qualitative objectives of the projects – the risk of appearance major quality deficiencies

Evaluation method of the innovation project global efficiency

A complete system of indexes to evaluate the global efficiency of a new product development project must approach at least the following perspectives: the financial performances of the project; the project's value; the technical performances of the project; the efficiency of research and development activities of the project; the capacity of fitting in the estimated cost and duration of activities; the degree of integration between the R&D and production activities; the degree of integration between the R&D and marketing activities. Therefore, in this paper is drawn up a method for new product development projects evaluation, based on those seven perspectives

Methods for innovation projects risk evaluation

Starting an innovation project assumes to state some competitive objectives referring to the allocated budget, time limit for project’s ending and also to the quality and performance parameters of the new obtained product. Referring to the innovation project development, the risk of unfulfilling the stated competitive objectives referrers to the exceeding the project’s budget and terms, and also to unfitting in the quality and performance parameters established in the innovation project planning stage. The large diversity of risk sources can be expressed by the possibility of appearance of some unexpected variations of the cost, time and quality of the new products. The innovation projects risk is settled by the variations of the cost, time and quality objectives effective values comparing to the planned values. Those variations are determined by purely random factors. The innovation projects characterized by uniform variations of the cost, time and quality objectives effective values around the mean are considered to be under statistic control. Those projects’ risk may be quantified and the risk impact over the project can be limited. The innovation projects characterized by fluctuant variations of the cost, time and quality objectives effective values around the mean are considered to be out of statistic control. The aim of this paper is to present two categories of statistic methods for innovation projects risk quantifying. The first statistic methods that quantify the risk of unfitting the quantitative objectives referrers to the time risk, cost risk and the risk of unfitting established performance parameters. The second category of methods represents statistic methods that quantify the risk of unfitting the qualitative objectives of the projects – the risk of appearance major quality deficiencies

Financial appraisal of the innovation projects

The main objective of the financial appraisal of an innovation project is to measure the rentability of those projects. The financial appraisal of an innovation project is similary to investment projects at short level. But on the other side, it has certain features due to its main characteristic activities