The practical barriers to kickstarting the innovation and investment in the sphere of construction in Russian Federation

Abstract

We have identified the main issues in introducing innovation into a construction project. The solution is realized through the study of both objective and subjective obstacles to the introduction of the innovative technologies in the investment - construction cycle, which is treated as a single process, because the economic effects of innovation can be evaluated only within the full life cycle of a building. We created a highly interconnected financial model of the compounding effects of innovation in the construction industry. We present the Russian construction market’s challenges and feedback loops in innovation by using graph theory and complex analysis. The article presents the method developed in the scientific school «Methodological problems of the economic effectiveness of regional construction clusters as a self-ordering system» that shows the algorithmic consistency and transparency of evaluating the effectiveness of the innovations. The described method can be used in a large array of scientific and theoretical tasks: from the replication of the method to other types of economic activity to the synthesis of methods and models for identifying key areas of innovation activity. It can also be used to build a method for assessing the innovative potential of a project.