A regional model of simultaneous investment, production and financial planning of programs for innovation development

Abstract

Subject. We address the planning of programs for innovative development of the region, which are based on simultaneous investment, production and financial planning. Objectives. The aim is to create a scientifically sound flexible management model that would consider the specificity of cyclical development of industrial region’s innovative system and the level of its socio-economic development, help overcome the economic determinism of territories, and boost the economic growth. Methods. The regional model of planning the innovative development programs implies global optimization of domestic current costs of research and development (R&D) of the industrial region, depending on its investment planning, and based on data on trends in fixed investments in the region; on production planning, according to data on trends in GRP; and on financial planning, based on data on trends in accounts payable of organizations. Results. We created a regional model for planning the innovative development programs. It rests on simultaneous investment, production and financial planning. The model has certain implementation features. The most elaborate for solving the problem under review is a pattern search algorithm. Adding this algorithm as a hybrid function for a genetic algorithm enables to achieve a sufficiently high-quality solution to the optimization problem. In contrast, adding the interior point method as a hybrid function does not always significantly improve the quality of global optimization. Conclusions. The presented model helps government entities make better decisions regarding the planning of innovative development of the country’s industrial regions.