Improving the Efficient Use of the Government Budget Allocations for Financing Innovation Activities

Đuričin, Sonja (2018) Improving the Efficient Use of the Government Budget Allocations for Financing Innovation Activities. In: Digital transformation : new challenges and business opportunities. Silver and Smith Publishers, London, pp. 311-328. ISBN 978-1-9993029-4-8

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Abstract

The aim of the research is to improve the efficient use of the government
budget allocations for financing innovation activities. The subject of the
research are the projects of innovation organisations co-financed by the
government budget funds in the period 2007-2017 and their financial
statements for 2017. The application of the desk research identified the
companies that, according to the current legislation, have the status of
innovation organisations, and then it indicated the participation of their
projects in the total number of projects co-financed by the budget funds of the
Republic of Serbia. The research found out the percentage of projects launched
by successful innovation organisations in the total number of co-financed
projects, as well as projects launched by innovation organisations that no
longer exist. Bankruptcy risk was assessed by applying the Altman's Z-score
for all innovation organisations, which in 2017 had the “active” status and for
which financial reports were publicly available. The assessment of bankruptcy
risk for innovation organizations provides the possibility of more efficient use
of budget funds in the future. Efficiency is reflected in the reduced risk of
budget funds being wrongly used for co-financing of projects of innovation
organisations in the distress zone. The research results show that in the
Republic of Serbia in 2017, 19% of innovation organisations are in the distress
zone characterised by the high bankruptcy risk. There is 30% of innovation
organisations in the grey zone with 50% probability of bankruptcy, while 51%
of innovation organisations are in the safe zone with a negligible bankruptcy
risk.

Item Type:	Book Section
Additional Information:	COBISS.ID=512539746
Uncontrolled Keywords:	Altman´s Z-score, innovation organisations, bankruptcy, improving efficiency, budget allocations
Research Department:	?? H1 ??
Depositing User:	Jelena Banovic
Date Deposited:	14 Feb 2019 14:27
Last Modified:	14 Feb 2019 14:27
URI:	http://35.240.28.64/id/eprint/1285
Author Links:	[error in script] No links available.

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