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ECONOMICS
THE DESCRIPTION OF INNOVATIVE DEVELOPMENT OF GERMAN INDUSTRIES Mishra Sh. (Russian Federation) ОПИСАНИЕ ИННОВАЦИОННОЙ РАЗРАБОТКИ НЕМЕЦКОЙ
ПРОМЫШЛЕННОСТИ1 Мишра Ш. (Российская Федерация)
Мишра Шила /Mishra Shila - аспирант, кафедра маркетинга, экономический факультет, Российский университет дружбы народов, г. Москва
Abstract: the article presents a description of industrial innovative development of Germany. That Germany is a great innovation leading country has highest R&D spending and good amount of net sale and operating profit as well great R&D intensity and good ratio of employee's growth rate. Although the export of Germany has decreased to the world and Russia because of sanction in Russia, Russia is one of ten exporters from Germany. The author has collected secondary data like scientific literature and some reliable sources of statistic of the nation.
Аннотация: в статье представлено описание индустриально-инновационного развития Германии. В Германии много инноваций, это страна высоких расходов на R&D, где хороший объем чистой продажи и операционной прибыли, также большая R&D интенсивность и хорошее соотношение темпов роста сотрудников. Хотя экспорт из Германии сократился в мире из-за санкций в России, Россия входит в десятку экспортеров из Германии. Автор собрал вторичные данные как из научной литературы, так и из некоторых надежных источников статистической нации.
Keywords: innovation, R&D, German highest R&D spending industries.
Ключевые слова: инновации, НИОКР, немецкие, высоких расходов на НИОКР в
промышленности.
Introduction
The current business circumstance is described by high competition driven by deregulation, emerging technology, empowered customers, and globalization of the economy, changeable economic environment and fast product development. Innovation is considered a key success factor, central to increasing economic output and productivity. Innovation is the ability to dictate and modify the 'rules of the game' that enables organizations to gain entry to new markets and challenge established market leaders [1].
An innovation is the implementation of a new or significantly improved product, good or service; a new marketing method; or a new organizational method in business practices, workplace organization or external relations [4]. There are different types of measures for innovation. Among them R&D-based measures is one. There is a great deal of focus in traditional industries on R&D as an input and driver for innovation. R&D has important implications on the measurements that may be used to assess the inputs to innovation. However, this measure has not necessarily a relation to innovation output [2]. The impacts of innovations on firm performance range from effects on sales and market share to changes in productivity and efficiency [4]. Which are output of innovation.
1 This article was prepared with the financial support RHF within the research project "Development of military innovation in Russia in terms of the sanctions regime by the European Union and the United States", the project №16-37-01009 a2."
The article describe about the innovative development of German industries. Germany ranks eighth out of 139 countries for innovation in the World Economic Forum's (WEF) "Global Competitiveness Report 2010-2011." According to the WEF, Germany is the international leader in terms of capacity for innovation, occupies fourth place for company spending on R&D, and secures sixth spot for quality of scientific research institutions. Germany has hundreds of research institutes, including internationally famous ones such as the Max Planck Society and the Fraunhofer Society, both based in Munich. They have been very successful in knowledge transfer also created the seeds of many innovations that have been commercialized. German companies file the third most Patent Cooperation Treaty patents (per million workers) in medium-high and medium-low-technology sectors (after Switzerland and Sweden), and in high-technology sectors they rank eighth, according to the Organization for Economic Cooperation and Development (OECD). Germany ranks third, after Japan and Sweden, for patents filed simultaneously with the U.S., Japanese and European Union trade offices [3].
Below there is explain about German Industries and its input and output activity towards innovation. As an input R&D has described and as output Sales growth rate, R&D Intensity %, operating profit, profitability, employees a year growth rate as well German export to Russia. At last there is compare Industry, Value added (% GDP) with some country. Last but not least the article summarized with conclusion.
German Industries and its activities towards innovation
Data Overview
> R&D spending by industry: 1.95% of GDP; internal R&D expenditure: 57 billion euros in 2014.
> Distribution of the internal industrial research budget: 9.2% small enterprises (up to 249 employees), 4.7% medium-sized enterprises (250-499 employees), 86.0% large enterprises (more than 499 employees) in 2014.
> Approx. 371,000 R&D personnel in 2014.
> Roughly 35% of internal R&D spending in industry was invested in the automotive sector, 17% in the electrical engineering sector, almost 14% in the chemical and pharmaceutical industries and about 10% in mechanical engineering.
> The highest number of R&D employees in German industry - roughly 27% - are employed by the automotive industry, while almost 21% work in the electrical engineering sector and approx. 11% in the chemical and pharmaceutical industry [5].
According to the 2016 EU R&D Scoreboard, in Germany the highest number of R&D spending on industry is automobiles & parts followed by pharma& biotech, electronic & electrical equipment, chemicals, software & computer services, industrial engineering, health care equipment & services, banks, general industrials and support services.
Fig. 1. Industry, Value added percent of GDP Source: world Bank, web - http://data.worldbank.org/indicator/NV.IND.TOTL.ZS (12.18.2016).
Germany has highest industry value added percentage of GDP in comparison of UK, USA and France from the year 2004 to 2014.
Table 1. Performance of companies based in the largest R&D countries of the EU
Factor Germany UK France
No. of companies 132 133 83
R&D in 2015/16, €bn 69.8 28.2 28.5
World R&D share, % 10 4.1 4.1
One year change, % 10.6 4.1 2
CAGR 3yr, % 7.5 3.1 0
Net Sales, €bn 1714.1 1069.3 1015.9
One year change, % 8.7 -22 -3.4
CAGR 3yr, % 2.8 -10 -3
R&D intensity, % 3.9 2.5 2.8
Operating Profit, €bn 85.2 80.5 63
One year change, % -21.7 -36.8 -20.5
Profitability, % 5.2 7.6 6.5
Employees, million 5.6 2.8 3
One year change, % 4.4 0.4 -1.4
Source: The 2016 EU Industrial R&D Investment Scoreboard. European Commission, JRC/DG RTD.
The companies based in Germany, accounting respectively for 37.6% and 30.0% of the EU's total R&D and net sales, made the largest contribution to the performance of the EU-
591 group. The 132 German companies increased R&D by 10.6% and net sales by 8.7% which is greater than other biggest contributor country like UK and France. These results reflect to a large extent the results in the Automobiles & Parts and also good performance in ICT and health related sectors. The Automobiles & Parts sector, accounting for 53% of R&D and 36% of net sales of the group of German companies increased R&D by 9.6% and net sales by 15.2%, e.g. double digit R&D growth was shown by Daimler, BMW and ZF. German companies showed also good performance in other sectors, namely double-digit R&D and net sales growth in health and ICT-related industries. In particular, outstanding double-digit R&D growth was shown by the largest German Pharmaceutical companies Bayer and Boehringer Sohn. For the third consecutive year, the top R&D investors remain the same: Volkswagen from Germany in the 1st place [6]. As in the table we can see the R&D intensity, operating profit and employees growth rate have also greater in Germany than UK and France.
German Export to Russia
One in ten German exporters sell goods to Russia. Ten percent of all German exporters traded with Russia. For three-quarters of these firms, selling goods to Russia made up around a quarter of their total exports. The Top five Germany Export to Russia are machinery, vehicles, pharmaceuticals, electronic equipment, and plastics. In 2013 German export to Russia 48.7 million and to the world 1.45 billion; in 2014, 39.8 million to Russia and to the world 1.5 billion; in 2015, 24.6 million to Russia and to the world 1.33 billion USD value of goods [7]. We can see there is decreasing value of export goods after sanction in Russia. Conclusion
Germany is a forward-thinking nation with the greatest industry value added percent of GDP. It is also one of innovation leaders in the world. All sector of World market leading companies also are based in Germany. German universities have focused for many years on educating and training high-profile young professionals in engineering and technology so as to enable them to become full-fledged global competitors.
As we see German companies and its innovation activities towards innovation, there is the highest R&D input for the innovation as output there are good amount of sales growth rate in a year as well as R&D intensity moreover operating profit and growth rate of employees in a year. These all explain that Germany is a great industrial innovative development place. However, German export value has decreased due to the sanction in Russia as Russia is one in ten German exporters. Acknowledgement
I would like to thank my supervisor, associated prof. Ekaterina A. Degtereva, for the guidance, encouragement and advice she has provided time as her PhD student. As well I am very appreciate to her for providing the funding which allowed me to undertake this research and participate in conference.
References
1. Edison H., Bin Ali N., & Torkar R. (2013). Towards innovation measurement in the software industry. Journal of Systems and Software. № 86 (5). P. 1390-1407.
2. Evangelista R., Sandven T., Sirilli G., & Smith K. (1998). Measuring innovation in European industry. International Journal of the Economics of Business. № 5 (3). P. 311-333.
3. [Electronic resource]: Germany the home of smart innovation. URL: http://online.wsj.com/ad/article/germany-innovation.html/ (date of access: 12.24.2016).
4. OECD/Eurostat (2005). The Measurement of Scientific and Technological Activities— Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd ed., OECD Publishing. doi: 10.1787/9789264013100-en.
5. [Electronic resource]: Research of Germany land of ideas. URL: https://www.research-in-germany.org/en/research-landscape/research-organisations/companies-industrial-research.html/ (date of access: 12.24.2016).
6. [Electronic resource]: The 2016 EU Industrial R&D Investment Scoreboard. European Commission, JRC/DG RTD. Trade Map. International Trade Centre. URL: http://www.trademap.org/(S(5kacq545ikrlylyqeenkwb45))/Bilateral_TS.aspx/ (date of access: 12.26.2016).
7. [Electronic resource]: World bank. URL: http://data.worldbank.org/indicator/NV.IND.T OTL.ZS/ (date of access: 12.18.2016).
THE CONCEPT OF ADVERTISING IN MODERN SOCIETY
Grishina A. (Russian Federation) ПОНЯТИЕ РЕКЛАМЫ В СОВРЕМЕННОМ ОБЩЕСТВЕ Гришина А. С. (Российская Федерация)
Гришина Алена Сергеевна / Grishina Alyona - студент магистратуры, экономический факультет, Московский государственный университет им. М. В. Ломоносова, г. Москва
Abstract: this article describes different variations of advertising and its role in the society. On the one hand, advertising is realized by as a non-personal form of communication, carried out through paid media distribution. On the other hand, advertising is understood as proposals addressed to an indefinite number of individuals. In addition, promotions are considered as invitations to make offers to individuals and firms. Based on the definition of "advertising" presented above, can be assumed that advertising depends on what happens in the world and in the commodity and services market in general.
Аннотация: в статье рассматриваются различные вариации понятия «реклама» и ее роль в жизни общества. С одной стороны, реклама понимается как неличная форма коммуникации, осуществляемая через посредство платных средств распространения информации. С другой, под рекламой понимают предложения, адресованные неопределённому кругу лиц, рассматриваются, как приглашения делать оферты, если иное прямо не указано в предложении. Исходя из определений понятия «реклама», представленных выше, можно предположить, что реклама в какой-то степени зависит от того, что происходит в окружающем мире и на рынке товаров и услуг в целом.
Keywords: marketing strategy, advertising, revenue, efficiency, trademark, target audience. Ключевые слова: маркетинговая стратегия, реклама, выручка, эффективность, торговая марка, целевая аудитория.
Слово реклама произошло от латинского слова «reclamar» и первоначально имело лексическое значение «выкрикивать». Со временем термин реклама стал активно использоваться во французском языке и имел привычное для современного общества значение «объявлять». В настоящее время термин «реклама» интерпретируют со средством, позволяющим компании любым способом продать товар потребительской аудитории. «Однако те времена, когда «нужно было создать хорошую рекламу, и тогда покупатели придут сами», давно прошли. Чтобы заинтересовать потребителей и убедить их делать покупки, массмедиа должны интегрироваться с другими коммуникациями»1. Реклама помогает компаниям увеличивать свою выручку, так же
1 Котлер Ф, Келлер К. Л. Маркетинг менеджмент. М.: Питер, 2014. С. 554. 31 ■ European science № 1(23)
