Page 77 - Theoretical and Practical Interpretation of Investment Attractiveness

The subject of innovation is understood as the creation of progressive innovations, the
establishment of organizational and management systems based on its practical application.
In general, the term "innovation" refers to a special method and means that contribute
to the emergence of new ideas, the emergence of traditional processes, and the development
and improvement of organizational and management systems. This term is derived from the
English language, which has become a recognized term in international terminology.
Today, in economic literature, our scientist’s express various definitions, explanations,
views, perspectives, and opinions on innovation. Some scholars (A.N. Folomyev 109 , G.Ya.
Kiperman 110 ) see innovation as the result of creative work that aims to create new products,
technologies, and services and has certain capabilities. Other authors (P.F. Drucker 111 , A.I.
Muravyov 112 , N.I. Lapin 113 ) emphasize the need to focus on innovation as a complex system
for developing business. Another group of scholars (A. Harman, R. Jones 114 ) understand
innovation as a process of implementing a new or improved version of an existing product.
In our opinion, the definitions and views on innovation provided by these scholars are
partly correct, but they do not serve as a basis for providing detailed information about the
innovative process. Therefore, in order to understand the essence of innovation and its specific
characteristics in innovation processes, it is necessary to develop a special classification that
fully reflects the content and nature of this category. Analyzing innovation requires an
important initial stage of classification, which involves studying a number of indicators that
characterize its nature.
A number of other economists, like A.I. Prigozhin, Yu.V. Yatskovech paid attention
in their studies to providing concepts and explanations related to the "innovation" category.
The study of their scientific research made it possible to classify the types of innovation.
N.P. Zavlin has classified innovations according to their magnitude, pace, efficacy,
efficiency, stage, and effectiveness in his research. However, when we examined scientific
literature, we witnessed that a detailed, clear explanation (definition) of the classification of
innovation has not yet been given.
Therefore, on this issue, the author intends to provide more complete scientific-
methodical information on classification, which serves to reveal all the features and systemic
elements of innovation and is aimed at ensuring innovative processes.
Summarizing the views formed from the studied research works, combining their
definitions of "innovation", and stating our partial conclusions, "Innovation" is a process
which aims at ensuring that the dynamic and statistically created innovation and
scientific achievement go to the final stage, and as a result, a certain economical effect is
created.

109 Folomyev A.N. On the Concept of a National Venture Investment System. // Innovation. 2002. No. 8. pp. 21 -30.
110 Kiperman G.Ya. Economics of the Enterprise: Dictionary. – Moscow: YURIST. 2001. 272 p.
111 Drucker P.F. Encyclopedia of Management. – Moscow: Dialektika, 2004. 432 p.
112 Muravyov A.I. Entrepreneurship: Textbook. – St. Petersburg: Lan, 2001. 696 p.
113 Lapin N.I. Theory and Practice of Innovation: Textbook. – Moscow: Logos, 2008. 238 p.
114 Jones R. Economic Essays. – Moscow: Directmedia. Publishing, 2007.
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