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Risks Of Innovative Activity: Economic And Legal Analysis

Author

Listed:
  • Nataliia Kuznietsova

    (Kyiv Regional Center of the National Academy of Legal Sciences of Ukraine, Ukraine)

  • Liudmyla Kot

    (Taras Shevchenko National University of Kyiv, Ukraine)

  • Oleksii Kot

    (Scientific Research Institute of Private Law and Business of the National Academy of Law Sciences of Ukraine, Ukraine)

Abstract

As experience in the development of the economy of different countries shows, risk is an integral factor in a market economy. The rapid development of science and technology, the emergence of new technologies, their implementation into production, the increase in the number of innovative projects give rise to new types of risks, which, in turn, complicate social relations. The lack of a unified approach to the scientifically justified definition of risk, its features, classification criteria, as well as the lack of a conceptual and categorical component necessitates the further study of risk in law, which is reflected in the qualitative legal regulation of the relations of participants. The subjects of the research are the economic and legal aspects of innovative activity risks. Accordingly, the purpose of the article is a study of the nature of risk, the main classification features, defining the role and place of legal risks, identifying the main approaches to risk management of innovative projects. To achieve this goal, we have used the following research methods: analysis and generalization of theoretical sources and scientific literature; abstractlogical method in the process of theoretical generalizations and formation of conclusions; general scientific methods of analysis and synthesis. In the result of the research conducted it is determined that the risk of an innovative project is a set of risks that combine the elements associated with a particular innovative project, that is, for each specific project and the entity that develops, implements and manages the project will be its own set of risks. A prerequisite for business decision-making is the skills and ability to manage risk, which is to determine its acceptable limits, taking into account the potential negative consequences, which, among other things, will minimize the impact of the risk factor on the planned economic outcome of the introduction of innovation. A crucial factor in ensuring the success of the innovative risk management process is interaction at all stages, in particular during the identification, analysis, evaluation, control, monitoring of risks. Engaging and understanding the risk management process and its need for all project participants ensures the effectiveness of structural and organizational risk management measures. Effective risk management requires commitment, as well as the conscious behavior of each person. The motivation and interaction of the parties involved in the project ultimately determine the quality of the work and therefore the success of the project.

Suggested Citation

  • Nataliia Kuznietsova & Liudmyla Kot & Oleksii Kot, 2020. "Risks Of Innovative Activity: Economic And Legal Analysis," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 6(1).
  • Handle: RePEc:bal:journl:2256-0742:2020:6:1:9
    DOI: 10.30525/2256-0742/2020-6-1-67-73
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    References listed on IDEAS

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    1. Martin Schieg, 2006. "Risk management in construction project management," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 7(2), pages 77-83.
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    More about this item

    Keywords

    entrepreneurship; risk society; innovative risks; legal risks of innovative business; risk management;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)

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