Transaction Costs in the System of Innovation Management and Ways to Reduce Them
In the face of economic instability, innovative activity is associated with high risk, large financial investment, long-lasting life cycle of an innovative product, covering all stages from idea to commercialization. To ensure effective cost management in organization, it is increasingly important to perform estimation of transaction costs and to identify ways to minimize them. Transaction Cost Management has a significant impact on financial results of enterprises, including organizations of the innovation sector. Initial research in the field of transaction costs had been conducted by foreign scientists. In Russia, the first study of transaction costs began during the transition period from an administrative to a market economy. In the second half of the nineties of the last century, studies of transaction costs have been streamlined and implemented in a consistent manner. The process of economic transformation revealed inconsistency in mechanisms of transition to market relations, which led to a sharp increase in transaction costs. By the moment, the sensitive issue of Transaction Cost estimation and optimization has so far been investigated only in a few studies. This article deals with the mapping transaction costs in the innovation landscape, investigates cost types relevant to the key stages of the innovation process and identifies the ways to minimize them. Internal and external factors affecting the demand for cost analysis, estimation and accounting in the process of innovation are identified. In the conclusion the main author’s findings are presented.