Theme of the lecture №8.

Investment and innovative policy of the enterprise

1. The concept of investment and its role in the reproduction of fixed assets

2. Types of investments. Composition of real investment

3. Selection and justification of areas of investment in the development of the production base of the company

4. Content and the role of innovation

5. Strategy of Industrial and Innovation Development of Kazakhstan

1.Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time. In contrast putting money into something with an expectation of gain without thorough analysis, without security of principal, and without security of return is gambling. Putting money into something with an expectation of gain with thorough analysis, without security of principal, and without security of return is speculation. As such, those shareholders who fail to thoroughly analyze their stock purchases, such as owners of mutual funds, could well be called gamblers. Indeed, given the efficient market hypothesis, which implies that a thorough analysis of stock data is irrational, most rational shareholders are, by definition, not investors, but speculators.

Investments - cash, including securities, information, works and services, other property, other rights attached investor in the objects of investment activity in order to obtain profit.

2.Classification of investments made:

- on the application object;

- the time factor;

- the nature of use.

1. Investments in property (tangible investments). Under material Investment understand the investments that are directly involved in the derived process (e.g., investment in equipment, buildings, stocks of materials);

2. Financial investments - investments in financial assets, the acquisition rights to participate in the affairs of other firms and business rights (e.g., acquisition shares, other securities);

3. Intangible investments - investments in intangible assets  (e.g., investment in training, research and development, advertising, etc.).

Investments regarding the application object can be divided into two type: Portfolio - investment in securities in order to follow the game on economic entity. The business comes through acquisition of securities and other assets. Portfolio - a set gathered together a variety of investment property, serves as a tool to achieve specific investment objectives of the depositor. The portfolio may composed of one type of securities (stocks) or different investment values (stocks, bonds, savings and certificates of deposit, collateral certificate, insurance policies, etc.).

3.Consumption and investments (accumulation) have the same source - the national income. There is a question on a parity of consumption and pure investments. Their relative density in the national income defines and the norm of accumulation adjusts. In most general view it is defined as the attitude of fund of accumulation to the national income:

FA

NA = ---- 100

NI

where NA – norm accumulation; FA – fund of accumulation; NI – national income.

4. Innovation is the development of new customer value through solutions that meet new needs, unarticulated needs, or old customer and market needs in new ways. This is accomplished through different or more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society. Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different (Lat. innovare: "to change") rather than doing the same thing better.

5. To ensure stable development of the country on the basis of diversification and modernization of the economy through creation of conditions for production of competitive products and export growth, Decree of the President of the Republic of Kazakhstan, dated to May 17, 2003, approved Strategy of Industrial-Innovational development of the Republic of Kazakhstan for 2003-2015. The authors of this strategy is the Ministry of Economy and Budget Planning of the Republic of Kazakhstan in partnership with the Ministries of Industry and Trade, Education and Science, Transportation and Communications, Labor and Social Protection of the Population, Energy and Mineral Resources, Finances of the Republic of Kazakhstan, Agency for Regulation of Natural Monopolies and Protection of Competition, and the National Bank. Strategy of industrial-innovational development of the Republic of Kazakhstan aims at forming of the state’s economic policy of the Republic of Kazakhstan in the period before 2015 and is focused on achievement of stable development of the country by means of economic diversification and shifting from extraction to processing.

Basic literature: 1,2,3,4,5,6,7,8,9.

Additional literature: 10,11,12,13,14,15,16.

Periodicals: 17-60

Internet sources and the optional list of electronic sources: 1-6