Journal of Siberian Federal University. Humanities & Social Sciences: Using an Option Approach to Assess the Effectiveness of an Import Substitution Project in the Perfumery and Cosmetics Industry of Asian Russia

Journal of Siberian Federal University. Humanities & Social Sciences / Using an Option Approach to Assess the Effectiveness of an Import Substitution Project in the Perfumery and Cosmetics Industry of Asian Russia

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Issue: Journal of Siberian Federal University. Humanities & Social Sciences. 2022 15 (12)
Authors: Baranov, Aleksandr O.; Muzyko, Elena I.
Contact information: Baranov, Aleksandr O.: Institute of Economics and Industrial Engineering of SB RAS Novosibirsk, Russian Federation; Novosibirsk State University Novosibirsk, Russian Federation; ORCID: 0000-0001-8597-9788; Muzyko, Elena I.: Institute of Economics and Industrial Engineering of SB RAS Novosibirsk, Russian Federation; Novosibirsk State Technical University Novosibirsk, Russian Federation; Novosibirsk State University Novosibirsk, Russian Federation; ; ORCID: 0000-0003-2684-6162
Keywords: option approach; financial efficiency; innovative project; venture financing; import substitution; Asian Russia
Abstract: Venture capital is one of the most effective sources of financing for small innovative companies and innovative projects. As one of the important tasks in the framework of stimulating scientific and technological progress in Russia and solving the problem of import substitution the development of the venture investment market can be denoted. In the context of the need to solve the problem of import substitution in Russia and in the regions of the Asian part of Russia as soon as possible, the formation and development of an adequate methodological base for assessing the financial efficiency of innovative projects financed by venture capital is a very topical issue. A promising direction for the development of the theory and methodology for evaluating innovations is the concept of real options. This paper presents the results of evaluating the commercial effectiveness of an innovative import substitution project in the perfumery and cosmetics industry using real options method. The calculations were made on the basis of the methodological approach proposed by the authors for analyzing the financial efficiency of innovative projects in the industry sector that attract resources from the venture funds for project implementation. The approbation of the approach was carried out for an innovative import substitution project implemented in one of the regions of Asian Russia. The results of the research, as well as the conclusions and recommendations obtained in this paper, can be applied by venture funds in their practice work of the evaluation and selection of innovative projects for financing that are of great national economic importance and ensure import substitution in the industry sector. The results obtained can be used by the authorities in the elaboration of programs for the development of venture financing of innovations in Russia
Pages: 1820–1840
DOI: 10.17516/1997-1370-0955
Paper at repository of SibFU: https://elib.sfu-kras.ru/handle/2311/149633

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