A utility approach to evaluating innovation

Abstract

Evaluation and comparison of the potentials of various possible alternatives for innovative development are necessary for making informed management decisions. The article presents a method for quantifying the effect and effectiveness of innovations in the field of equipment and technology and of consumer goods, based on a utility approach, that is, based on their impact on economic growth. It is necessary to take into account the fundamental difference in identifying the utility effect and efficiency of introducing innovations into production and consumer goods. In the first case, an approach is proposed, the foundations of which were created by V.Ya. Elmeev, in the second - the methodology developed by the author. Comparison of the projected effects of innovations in these areas on the scale of the national economy makes it possible to foresee the possibility of a slowdown in economic growth in advance and develop adequate measures to regulate it.