Value formation of innovative product : a way to commercialization

Abstract

Purpose: The issues of studying the value formation process of an innovative product, from the idea to the prototype to the commercialization of the output from the production line, depending on the type of innovations, are the aims of this article. Design/Methodology/Approach: The conceptual framework of "value" and "innovations" is explored and the theoretical basis of the value approach is revealed at the beginning of the article. The definition of an innovative product is given and the development process and the mechanism of its value formation at each development phase are revealed. Findings: The value-added elements are specified, from the idea generation to the commercialization of the innovative product. The expenses for the calculation items and the development phases of the innovative product are estimated. Practical Implications: Categories of the innovation-based economy development, as "innovation", "innovative product", and "value" are not sufficiently studied. Intensive discussions are taking place in the scientific community regarding what an innovative product is and how its value is formed. A specific result of intellectual activity, at the initial stage of its formation represents an idea that is difficult to be estimated. Originality/Value: The problematics for further research of value formation of innovative products depending on their specific nature is put.