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Financial Analytics: Science and Experience
 

Evaluating how innovative development sustainability depends on the economic condition of industrial enterprises using a correlation analysis

Vol. 8, Iss. 18, MAY 2015

PDF  Article PDF Version

Available online: 21 May 2015

Subject Heading: RISK, ANALYSIS AND EVALUATION

JEL Classification: 

Pages: 10-18

Yashin S.N. Lobachevsky State University of Nizhny Novgorod - National Research University, Nizhny Novgorod, Russian Federation
jashinsn@yandex.ru

Soldatova Yu.S. Lobachevsky State University of Nizhny Novgorod - National Research University, Nizhny Novgorod, Russian Federation
julia2511@bk.ru

Importance Considering the need to improve innovative activities of the Russian industrial enterprises, we face a relevant issue of finding out how their innovative development sustainability depends on factors that influence the effectiveness of innovative activities.
     Objectives The research strives to reveal a correlation between innovative development sustainability and the economic position. The idea is illustrated with the case study of the Russian manufacturing enterprises in metallurgy.
     Methods Using an expert and points-based evaluation, analytic hierarchy process, correlation analysis methods, we devise an algorithm for determining trends, format and extent of relations between innovative development sustainability and the current economic position of the enterprise. Illustrating the case studies of some Russian metallurgical enterprises, we test the proposed algorithm.
     Results We clarify the notion of innovative development sustainability; determine general integrated indices of innovative development sustainability and economic condition of enterprises under study. We also calculate the relevant correlation coefficients between the resulting indices and check their materiality.
     Conclusions and Relevance If practically implemented, the methods and algorithm for identifying a correlation between innovative development sustainability and economic condition of the enterprise will ensure flexibility and scientific substantiation of decisions taken on innovative development of the industrial enterprise. Based on the results, we conclude that innovative development sustainability directly correlates with the current economic condition of some enterprises under study. We also analyze reasons why there is no correlation between parameters of the enterprises, which fail to demonstrate such a correlation.

Keywords: innovative development, innovative activity, sustainability, economic condition, correlation analysis

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