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that ensure the functioning of venture financing for small innovative business),
• Lack of economic incentives and flexible system of taxation of venture business to attract investments in high-tech sector organizations at an acceptable level of risk for venture investors. In Georgian corporate and tax legislation, not only are there any incentives for the participation of part of banking, pension, insurance or corporate capital, but there are direct prohibitions or impediments [6].
Thus, the priority task for the development of the Georgian economy is the creation of a venture infrastructure to attract capital and activate the venture business in order to create a synergetic effect in the development of Georgian small and medium-sized businesses and the innovative development of the Georgian economy as a whole.
References
1. Gompers P., Lerner J. "The Venture Capital Revolution", Journal of Eco- nomic Perspectives 15 (Spring 2001) pp. 145-168
2. Ernst&Young Turning the corner. Global Venture Capital Insights and Trends 2015,
http://www. ey.com/Publication/vwLUAssets/EY -Turning the corner/$FILE/EY-Turning the corner.pdf
3. Siegel R., Siegel E., MacMillan I.C. Corporate Venture Capitalists: Autonomy, obstacles, and performance. Journal of Business Venturing, v.3. Summer, pp. 233-247 (241)
4. The Australian Venture Capital Industry: development and trends, AXISS AUSTRALIA, Sydney, January 2012
5. The economic impact of venture capital in Europe, EVCA, Coopers & Ly-brand Corporate Finance
6. Venture capital policy review: United States, Giinseli Baygan, December 2003, http ://www. oecd. org/sti/working-papers
STATE INNOVATIVE POLICY OF GEORGIA
Chechelashvili Maia,
Doctor of Economics (PhD), Professor of the Georgian Technical University, Tbilisi
Abstract
The article deals with the development of innovative management, which presupposes such management of innovations, which touches upon issues of organization, strategic and current planning, as well as stimulating and controlling the implementation of innovation processes at various levels of government - state, regional, corporate, at the level of a single firm or research Organization.
In conclusion, it is noted, that Georgia has accumulated considerable experience of such management, which deserves special analysis and generalization, especially in that it refers to the high technology sector and high technologies. In addition, the author notes that innovative management was carried out in Georgia even in conditions of centralized management.
Keywords: Innovative management, Level of management, Strategic planning
State innovation policy is an integral part of socioeconomic policy, which expresses the state's attitude to innovation activity, determines the goals, directions, forms of activity of Georgian state authorities in the field of science, technology and the realization of science and technology achievements. It is represented in the Georgian government's concepts of socio-economic development of the country for the long-term perspective and the program of social and economic development of Georgia in the medium term. [1]
The purpose of the state innovation policy is:
• The development, rational allocation and effective use of the scientific and technical potential,
• The formation of its structure, the increase in the contribution of science and technology to the development of the country's economy,
• The realization of the most important social tasks, the provision of progressive structural transformations in the sphere of material production, competitiveness, strengthening the country's defense capability and the security of the individual, society and the state.
The main objectives of the state innovation policy:
• Provision of legal regulation and protection of interests of participants in innovation activities;
• Direct and indirect support of basic and improving innovations in accordance with state innovation programs;
• Assistance in the development of a competitive environment in the innovation sphere, support for small and medium-sized innovative entrepreneurship;
• Formation of modern effective innovative infrastructure;
• To promote the activation of innovation in the regions of Georgia;
• Support of joint innovative programs and projects of CIS countries, creation of joint innovative enterprises, development of international innovative cooperation taking into account Georgia's national interests.
State innovation policy is developed and implemented on the basic of:
• Innovative forecasts - foreseeing the main directions for mastering scientific and technological achievements in production in the world and in Georgia in the short, medium and long term;
• Innovative strategy - determining priority directions for mastering basic and improving innovations in a country or region for the medium or long term;
• State innovation programs - a combination of state and regional innovative projects that ensure the integrated development and dissemination of basic innovations and measures to support them;
• Innovative projects - a set of activities that ensure the development of specific innovations in the optimal time with the maximum effect;
• Innovative and venture funds created by government agencies with the involvement of private and foreign capital for financial support of basic and improving innovations, especially in the sphere of small and medium-sized innovative entrepreneurship; Insurance of innovative risks through state guarantees for individual projects, development of insurance and reinsurance activities in the field of innovation;
• State expertise and registration of basic and improving innovations by authorized bodies. [2]
The state innovation policy of Georgia is formed and implemented on the basis of the following basic principles:
1. Recognition of the priority value of innovation activities to improve the level of technological development of social production, the competitiveness of high technology products, the quality of life of the population and economic security;
2. Ensuring state regulation of innovation activities in combination with effective functioning of the competitive mechanism in the innovation sphere;
3. The concentration of state resources on the creation and dissemination of basic innovations that ensure progressive structural changes in the economy;
4. Creation of conditions for development of market relations in the innovation sphere and suppression of unfair competition in the process of innovative activity;
5. Creation of a favorable investment climate in the implementation of innovative activities; Activation of Georgia's international cooperation in the innovation sphere; Strengthening the defense capacity and ensuring national security of the state as a result of innovation.
Formation and implementation of the state innovation policy of Georgia is provided by the bodies of state executive power of Georgia, appointed by the Government of Georgia. The innovation policy of the subjects of Georgia is formed and implemented by state authorities of the subjects of Georgia, taking into account the state innovation policy of Georgia and the interests of the regions. The development and implementation of state innovation policy should involve public associations operating within the powers established by the legislation of Georgia.
Innovative management in Georgia
Certainly, there have been some positive developments. The government managed to curb the growth of crisis processes, prevent the disintegration of the scientific sphere, improve some absolute and relative indicators of science. The fact that in 2017 the Government of Georgia declared the industry a priority was evi-
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dence of greater attention at the highest level of government to the sphere of science and education. In addition, in 2012, the "Main Directions of the State Investment Policy of Georgia in the Sphere of Science and Technology" approved. The significance of the development of the sphere of science and technology for Georgia emphasized in the speeches of the President of Georgia in 2013 and 2014. However, the changes proposed in 2014 to the current legislation in the opinion of leading Georgian scientists, in essence, are destroying science in Georgia. At the same time, analyzing the indicators of recent years, we can note the following. First, there has been some growth in spending on science and technology in both relative and absolute terms. Expenditure on education and science for 2014 exceeds the similar indicator of 2013 by 8.4% and by 92.6% in 2007. In 2015, Georgia's budget expenditures on science and education increased by 15% compared to 2014. In 2016 and 2017 spending on science increased by another 12%. However, in terms of spending on science and technology, Georgia is inferior in many respects to even single firms and companies: even when recalculating GEL, at purchasing power parity, Georgia's spending on R & D is less than the funds allocated for these purposes by the two US companies that are among the five world leaders - General Motors and Ford Motors. We still do not observe even the recommendation of the International Academy Council for developing countries on the need to increase science funding to about 1.5% of GDP (Georgia allocated 0.2% for science). [3] Secondly, despite the volatility of emerging positive trends, in Georgia in recent years, there has been an increase in attention to innovation. Although in general it is impossible to talk about a noticeable growth of innovation activity, there is a growing interest in the problems of innovative management. To date, a large number of monographs on innovative management have published. Among the most famous foreign scientists, whose work related to the problems of innovative development, it is customary firstly call J. Schumpeter. Of the more recent works relating to the last decades, which were translated into Georgian, it is worth mentioning the works of B. Thviss, R. Foster, M. Porter, R. Coase, I. Ansoff, J. Grayson, E. Janch, Mar-tino, R. Blake, A. Thompson, Bright, D. Sahal, P. Druker, and others. Of course, we should add works that have not been translated yet into the Georgian language, such authors as W. Baumol, E. Frankel, Z. Grili-ches, P. Gompers, J. Lerner, J. Tidd, P. Patel, J. Metcalfe and others.
Innovative management presupposes such management of innovations that involves issues of organization, planning (strategic and current), as well as stimulating and controlling the implementation of innovative processes at various levels of government - state, regional, corporate, at the level of a single firm or research organization, To their departments, individual creative teams and individual participants in the innovation process.[4]
In conclusion, it should be emphasized, that Georgia has accumulated considerable experience of such management, which deserves special analysis and generalization, especially in that it refers to the knowledge-
intensive sector and high technologies. It should be noted that innovative management was carried out in Georgia and in conditions of centralized management.
References
1. Carlson A. K., A Theoretical Framework for Goal-Based Choice and for Prescriptive Analysis. September 14, 2007. http://opim.wharton.upenn.edu/risk/library/2007-HK,Russo,etal-TheoreticalGBC.pdf
2. Прангишвили И., Иванус А, Системная закономерность «золотого сочения»: системная устойчивость и гармония // Проблемы управления. 2004, стр. 2
3. Georgian National Bureau of Statistics
http://www. geostat.ge/?action=page&p id=2104&lan g=geo
4. Orpen C. Market Conditions, Decentralization and managerial effectiveness in South-African and American Corporations// Management International review, 1978, #1, pp.61-67
A BRIEF ANALYSIS OF THE DEFENCE EXPENDITURE OF THE REPUBLIC
OF BULGARIA
Venelin Terziev
Professor, Ph.D., D.Sc. (National Security), D.Sc. (Ec.), University of Rousse, Rousse, Bulgaria, National Military University, Veliko Tarnovo, Bulgaria University of Telecommunications and Post, Sofia, Bulgaria
Elitsa Petrova Associate Professor, Ph.D., National Military University, Veliko Tarnovo, Bulgaria
Abstract: The complex state of the Bulgarian economy is a prerequisite for the state of defence and security. The low GDP, low production, unemployment, the outflow of young people and professionals abroad are a prerequisite for the few resources allocated to defence. Contrary to all expectations of Bulgarian society defence spending did not only remain the same, but decreased significantly as a percentage of gross domestic product and reached unbelievable level of 1.35 for 2014.
Bulgaria and its Armed Forces are facing the challenge of available critical shortage of financial resources. It continues to stand a heavy task to find an optimal balance between available resources and planned defence capabilities. The budget of the Ministry of Defence is insufficient for realization of the planned.
According to the Objectives of the Administration for 2015, the Ministry of Defence is needed to support purpose of existing and the gradual development of new defence where the capabilities including modernization of equipment to acquire new abilities and keeping Bulgarian Army with highly motivated and professional people.
The Programme for the Development of the Defence Capabilities of the Armed Forces of the Republic of Bulgaria 2020 has been developed pursuant to Article 16, paragraphs 6 and 7 of the Law on Defence and the Armed Forces of the Republic of Bulgaria. The Programme is aimed at continuing and further developing the process of strategic rethink of the defence policy and the build-up of the defence capabilities that was initiated by the White Paper on Defence and the Armed Forces of the Republic of Bulgaria. This document sets out the parameters for the development as well as the central guidelines for the build-up of the Bulgarian Armed Forces' defence capabilities until 2020 through harnessing the political, economic, technological, information, military and civil resources of our country.
Keywords: national security, defense technology, strategic management.
INTRODUCTION
The complex state of the Bulgarian economy is a prerequisite for the state of defence and security. The low GDP, low production, unemployment, the outflow of young people and professionals abroad are a prerequisite for the few resources allocated to defence. Contrary to all expectations of Bulgarian society defence spending did not only remain the same, but decreased significantly as a percentage of gross domestic product and reached unbelievable level of 1.35 for 2014. General view point of personnel involved in activities in defence of the country is that the lack of money to invest in infrastructure, logistics, equipment, armement, and people reduce abilities of Bulgarian Army to be adequate for future military actions. Reforms in the army
during the last 10 years related solely to reduce costs in all possible directions. The minimum investments in facilities and equipment, the missing funds for the maintenance of existing assets, and the minimum investments in people discourages staff working in this field. Legislation in recent months suggests reduction of wages and social benefits for people, increasing the retirement age, the abolition of the wages that are applied at the time of retirement of the officers.
Below it is made an attempt for a short review of the legislation in the field of defence mechanisms for the stabilization of the costs of different directions, and state defence spending by type of forces to 2014 and a review of state defence spending by different defence policies. It was made a review of certain documents
