Development of investment potential for modernization of industrial enterprise in Russia
This study identifies the sources of investment potential for the modernization of industrial enterprises. Aim. This study identifies and classifies the main sources of investment potential that businesses can use to finance the production and modernization of fixed assets. Objectives. To identify the main sources of investmentfunding for fixed assets, clarify the procedure for their development and use; and analyze the main factors limiting the investment activities of enterprises in the Russian economy. Methods. This study uses common methods of scientific knowledge to identify the major factors limiting the investment activities of enterprises, analyze investments in fixed assets, and define the main sources for financing the modernization of fixed assets. Results. Increasing the efficiency of production undoubtedly depends on the state of its resources and technical base. Updating the technical base increases productivity, improves the quality of products, and creates conditions for producing new innovative products. However, producing innovative products is impossible when depreciation of fixed assets in some industries is 50% or more. Analysis of international experiences reveals that the volume of investment in fixed assets should accommodate an increasing need for financing to update the resources and technical base with the latest technology in a timely manner. The proportion of investment in fixed assets during 2009-2013 in the Russian economy was 20% of GDP, which is insufficient. This study identifies the main sources of investment financing and proposes effective management mechanisms. Conclusions. The analysis reveals that the main sources of investment financing in fixed assets for Russian companies are their own money. Analysis of the main sources of modernization financing reveals the specifics of their development and the factors limiting investment activities in Russia.