FINANCIAL INNOVATIONS

Financial innovations in relation to the global financial crisis

Financial innovations in relation to the global financial crisis

Introduction

Current demand for innovation caused by the presence of the economic crisis, or other process and the need for immediate elimination of the crisis at the expense of innovation (Edward, 1999, 66).

This innovation represents a crisis innovation. The main sign of defining crisis innovation is to solve the problems of realization of goods (works, services) in response to falling demand for the goods and the decline in its sales, as well as solving more complex problem - the survival of the economic entity in the market in the face of fierce competition. Crisis innovation aimed at the elimination of institutional, industrial, economic or financial crisis of the economic entity.

The strategic need - is need for innovation in the future. It is caused by perspective projections of economic activity, such as forecasts of loss of competitiveness of the goods, fall in the image of an economic entity, its possible bankruptcy, etc. The aim of innovation here is to increase the competitiveness of the product and the entire economic entity in the future. Such innovation is innovation development.

Kind of innovation is a combination of individual innovation, summarized in a single group for certain signs (signs) that distinguish this group of innovations from other groups. For example, in innovation, selected on the basis of the target, are the kinds of innovation crisis innovation and innovation development in innovation identified by external characteristics, types of innovation are the products and operations, etc (Edward, 1999, 121).

Form of innovation involves different forms of innovation. Form of innovation - innovation is a group, united by a common mode of existence, or essence of an innovation. This new technology, new product, a new insurance product, a new tourism product (tour, cruise, tourist route, etc.), the new technology of production, etc (Galbraith, 1997, 121).

For example, in 1997 the bank "Petrovsky" (St. Petersburg) jointly with the office of the Pension Fund in St. Petersburg, the City Centre for the appointment and payment of pensions and benefits, the Office of the federal postal service introduced for pensioners a new type of loan, known as microcredit. This micro-credit issued by the retiree up to the nearest pension entitlements or benefits under a fairly low interest rate.

What is the nature of financial innovation?

The concept of financial innovation

In the general system of innovation can be identified for financial innovation, i.e. innovation, which operates in the financial sector. Financial innovation, as well as any other innovation, divided by the crisis innovation and innovation development in the new financial product and a new financial transaction (Galbraith, 1997, 52).

As an independent economic category of financial innovation have the following features:

1. Mandatory sale of a new financial product on the market for financial innovation.

2. Mandatory implementation of financial transactions in the market or within a business entity.

3. Functional dependence of the financial innovation of the time.

4. Feature of the financial product, which is expressed, firstly, in the presence of the individual ...