Examining the Impact of Air Passenger Transport on International Long-Distance Regular Bus Transport in the Slovak Republic

The paper deals with the study of the impact of regular air passenger transport on international long-distance regular bus transport in the Slovak Republic. The comparative period is 2017 (2018) with 2008. The issue is also related to the issue of the use of Slovakian airports for regular air transport after the Slovak Republic entered the European Union in 2004. According to the results of the 2008 survey, both modes of transport have significantly affected the economic crisis. The development of low-cost airlines also affected the decrease in the number of issued transport licenses in 2018 compared to 2008 in international regular bus transport.

Introduction
The importance of air traffic for increasing the mobility of the population of the served regions is undeniable. Regular air transport is important for industry, logistics, but also for the development of regions in terms of tourism. Road freight transport generally increases with GDP growth [1,2]. The development of demand for public transport is influenced by a number of determinants, including the quality of transport services [3,4]. Road transport, including bus transport, is generally more burdened by charges and taxes in relation to the internalisation of external costs than other modes of transport [4][5][6][7]. This can affect the development of costs and hence the price of regular bus services. In regular air transport, particularly within Europe, the liberalization of the transport market has increased the number of airlines and the creation of low-cost airlines, which after the accession of the Slovak Republic to the EU affected also the Slovak Republic. From the point of view of low cost airlines, the costs of specific airports are very important [8].
Similarly, after the accession of the Slovak Republic to the EU (since 1 May 2004), competition on the regular long-distance bus transport market has increased, following the acquisition of a Community license after meeting the conditions. This has caused the impact of development of regular air transport to regular long-distance bus transport and, in particular, international public bus transport in the Slovak Republic; is the research theme of the submitted contribution.

Development of regular international bus transport from the Slovak Republic
The Slovak Republic was founded on January 1, 1993 by the dividing of the former Czechoslovakia. While in 1993 there were only 68 regular international lines starting in the Slovak Republic so in 2008 it was already 159 lines. From this number in 1993 to 33 lines to the Czech Republic, i.e. 48,52 %. Until the EU Member States were 17 bus lines and 18 lines were a.k.a. in the so-third countries outside the EU.
Slovak Republic joined the European Union 1.5.2004. In the year 2008, the Slovak Republic has been in the EU for four years and the economic crisis has only come in the fourth quarter. Of the above number of lines in 2008, up to 142 lines was to the EU Member States still account for up to 75 bus lines in the Czech Republic, i.e. 47.16%. Here is an obvious demand for transports to EU Member States because only 17 bus lines were in the so-called third countries outside the EU, i.e. 10,69 %. The comparison shows that the number of bus lines grew, but the percentage ratio to the Czech Republic remained the almost preserved decrease by only 1.36%.
In tab. 1 is the comparison of issued licenses for international regular bus transport from the Slovak Republic in 2008 and in 2018 (September). As a basis, licenses were not taken for the bus line because the lines have different tracing and are not always operated. It should also be noted that in tab. 1 are not bus lines that start outside the territory of the Slovak Republic but pass through the territory of the SR. So, in terms of international regular bus services, its supply declined between 2008 and 2018.

Development in regular air transport in the Slovak Republic
In Slovakia were established a total of 98 civilian airports in 2008. 14 of them have public airport status, 12 non-public airport status (20 of which are used only for sport flying) and 72 serve as an agricultural airport.
In 2004, it was in compliance with Act no. 136/2004 Coll. Airport Transfers performed by airport companies. Joint stock companies were founded of M. R. Stefanik -Airport Bratislava, a.s. (BTS) and Kosice Airport -Airport Kosice, a.s. with 100% ownership of the state. A part of the property these joint stock companies became a.k.a. the infrastructure assets (take-off and landing tracks or runway, taxiway and apron for aircraft). Later, with the privatization of the owner, the structure of Airport Kosice, a.s., changed, and in the case of M. R. Stefanik Airport, a.s., the owner structure was modified in the following ratio -34 % shares owned by the State through the Ministry of Transport and Construction of the Slovak Republic and 66 % National Property Fund.
In 2005, within the meaning of the same law, joint stock companies were founded with a mixed ownership structure of the state and local authorities -Airport Poprad -Tatry, a.s., Airport Company Zilina, a.s., Airport Sliac, a.s. and Airport Piestany, a.s. At these airports (except Sliac airport), the infrastructure assets did not become the property of the airport companies, but they were acquired by the higher territorial units (VUC) by free transfer. Subsequently, the VUC rented this basic equipment the airport to airport companies for 1, -SKK (0,03 euros) for a period of 20 years [9].
At present, 2018 (September) is a regular air passenger transport conducted in Slovakia only from Bratislava, Kosice and Poprad-Tatry airports. In August 2012, scheduled air services from Zilina to Prague were cancelled.
According to the general assumptions given in the materials "Concept of air transport development of the Slovak Republic for the period up to 2010"and on the basis analysis of airport, air traffic in Slovakia by 2010 should be grow in the range of 10% (pessimistic assumption) -23% (optimistic assumption) -see  This predicted development has not been fulfilled. In 2017, the Airport M.R. Stefanik Bratislava equipped both in regular and irregular air transport in total 1,942 mil. of passengers (Table 2).
Due to the focus of the research on the impact of the development of regular air passenger transport on international long-distance regular bus transport in the Slovak Republic, we analyze the development of regular air transport.  The number of passengers after the economic crisis, which began in September 2008 and continued from 2009 to 2014 and others, the number of passengers in the regular air transport at Bratislava Airport was decreasing and from 2015 again started to increase but still did not reach the number of passengers before this crisis.
The trend of the year-on-year development of the number of passengers in regular air transport at M. R. Stefanik Airport Bratislava for the period 2007-2017 is shown in Fig. 2. The biggest decline was recorded between 2008 and 2009 with the onset of the economic crisis. The greatest growth rate is between 2014 and 2015. The projected development of the total number of equipped passengers [13] at the Airport of M. R. Stefanik Bratislava was not fulfilled (see Table 2) this forecast is not responsible not even growth rate. Regarding regular air transport, its offer also decreased between 2007 and 2017.

Research of demand for regular air transport and demand for long-distance bus transport
In terms of examining the impact of developments in regular air transport on long-distance and international regular bus transport, it is important to assess the routing and the number of flights in selected destinations with bus lines. Table 3. Evolution of the number of departures from Bratislava and Kosice airports to destinations served by regular bus transport for 2008 and 2018 (September), Source: authors based on data from [14] The development of the number of departures from Bratislava and Kosice airports to destinations served by regular bus transport for 2008 and 2018 shows reduction in the offer about 29.51%. The largest decrease is in the offer of regular air transport to the Czech Republic up to 68.97%. The second largest decrease is for airlines in England (London), where compared to 41 flights there are only 29 flights, which is a decrease of 29.27%. A new regular air service is from the Slovak Republic to Belgium and the Netherlands. A slight increase is in the number of flights to Italy about 9,09 %.
From the point of view of the demand for air transport, the price factor is a very important factor, all students have identified it as the most important factor. The second most important factor when selecting a ticket was the flight timetable (s). Also, the possibility of direct flight without transfer plays an important role in deciding on the choice of air transport. The passengers are willing to pay for a direct flight, if they have such a possibility. This was a specific survey of college students on the subject of traveling to the US [7][8].
The issue of demand elasticity as a result of increasing / reducing prices in mass passenger transport is a very important theme [15]. Therefore, also in the field of review of the impact of regular air transport on long-distance or international regular bus transport we compared minimum prices in selected destinations.

Table 4. Comparison of minimum prices for air and bus transportation in selected destinations;
Source: authors based on data from [16][17][18][19][20][21] , 0 0 (2018) 2018 https://doi.org/10.1051/matecconf /201823602007 MATEC Web of Conferences 236 LOGI From the point of view of prices, the bus transport is becoming more advantageous for destination to the Bratislava / Kosice -Prague and also for the destination Kosice -Vienna and Kosice -Warsaw. For the other compared destinations, air travel is even more advantageous in terms of cheapest airfares and not only travel time. These are the following destinations: Kosice / Poprad / Bratislava -London and also destinations Bratislava-Brussels / Eindhoven / Milano. A comparison of minimum prices for bus and air transport is shown in Fig.3.   Fig. 3 Comparison of minimum prices for air and bus transportation in selected destinations; Source: authors based on data from [18,19] From tab. 4 and Fig. 3 shows that the competitiveness of air transport also increases in terms of price policy, especially at the price of tickets, which are purchased well in advance of the date of transport. Due to load bus transport external costs, pressure to increase the wage of drivers, requirements for paying minimum wages in the start state or end of transport etc. there is a prerequisite for a significant increase in costs and thus prices in bus transport [20].
Another important determinant of traffic decision is the total time of transfer "from house to house" [21]. For example, bus travel time from Kosice to Prague ranges from 10 hours to 12.5 hours the flight time is 1 hour and 30 minutes. This factor could no longer be included in the contribution in terms of the scope of the contribution.

Conclusion
In examining the impact of the development of regular air transport from the Slovak Republic on regular bus transport between 2008 and 2018, we found that in both modes of transport there was a decrease in the number of lines to destinations served by bus transport as well. In regular air transport, the drop is 29.27% and in bus transport by 33.33%. The comparison base is 2008 with the year when the economic crisis began (in September) and ended the boom. In 2008, they were equipped with regular air transport from M. R. Stefanik Airport, the maximum number of passengers was up to 1.75 million, which has so far failed to overcome. In 2018 there are regular air lines operated only from three Slovak airports, except for Bratislava it is still from Kosice and Poprad. It is obvious that a large part of the population of the Slovak Republic uses regular flights from neighbouring countries mainly from the airports of Vienna, Budapest, Katowice and Krakow, which may also affect the drop in international bus lines. The offer of rail transport and its development was not taken into account in the examination. Here, it is worthwhile to compare the destination of Kosice-Prague or Bratislava-Prague. Particularly, private company RegioJet has established a bus service for these destinations and they are currently strengthening rail transport and busting bus transport. From the point of view of further research and refinement of the results, it would be necessary to refine the offer in air and bus transport on the number of passenger seats due to the different capacity of aircraft and buses.
It would also be appropriate to examine how the development of Gross Domestic Product (GDP) and Demand will also be affected or performance in regular air transport and long-distance, international bus transport. In view of the fact that the number of passengers cleared at the Bratislava airport at the time of the economic crisis 2009-2014 decreased.
The issue of elasticity of demand depends on the prices on the lines into to the same destinations in the air and bus transport or rail transport is another independent research theme in the field of transport services. Passenger decision making or choosing air or bus transport may depend from different psychological factors, safety, the possibility of using integrated transport systems for transportation to the airports etc. [22]. Of course, the issue of digital marketing and real-time sales of tickets also plays a role in deciding on the choice of mode of transport [23]. Some airlines from the Slovak Republic have the task of transporting part of the passengers to major international airports where these passengers continue with other airlines to other destinations often outside Europe. It would be necessary to focus on examining the final destination of passengers.
The paper did not exhaust all aspects of the issue but pointed out certain aspects of the development over the period considered.


Using an ICT tool to stimulate multi-disciplinary innovation teams in establishing responsible research and innovation practices in industry

This case study demonstrates that industry researchers can productively work with experts from the social sciences / humanities to integrate principles of Responsible Research and Innovation (RRI) into actual, on-going industrial innovation projects. The case presents the first example of collaborative, interdisciplinary and integrated innovation project management that is supported by an ICT tool with the aim of stimulating RRI. It is also the first case that presents both qualitative and quantitative data demonstrating enhanced socially responsible innovation with combined attention to technical, economic and social aspects. The tool, in the form of an online innovation project support dashboard, helps researchers understand and appreciate ‘soft’ project aspects regarding communication and socio-ethical context as well as relevance, by measuring and visualising the impact of such aspects in relation to innovation project success. As such, the tool can be used to enable researchers to develop into more ‘reflective practitioners’ who take responsible innovation as a starting point rather than an add-on to technical innovation. In addition, the tool is adaptable to different industrial innovation contexts. For this case study, the tool was used in a contract research organisation leading many innovation projects. The benchmark element is based on innovation project assessment of earlier projects within the organisation. That means that in each organisation, also within different innovation fields, context specific key innovation quality and performance indicators (KPIs), and their interrelations, can be identified, ensuring the tool’s relevance and usability within other organisations. The results and considerations presented in the case study can therefore help inspire researchers from the fields of natural and social sciences to set up and participate in collaborative research and innovation practices to further support and enhance RRI.

In recent times, policy makers, social scientists and corporate managers have been advocating responsible research and innovation (RRI) practices, through which companies can further embody corporate social responsibility. These practices include active reflection on -and integration of -socio-economic and socio-ethical aspects by innovators on the research and development working floor, in addition to technological and scientific aspects. However, innovators are frequently not used to doing this. In fact, social scientific research has shown that researchers and engineers are often preoccupied with their technological work, and therefore tend to focus less on the socio-ethical and socio-economic context (cf. Brunner & Asher 1992). Some innovators have even indicated that they are discouraged to focus on anything else but the science and technology (cf. Fisher & Miller 2009). Even where innovators are aware of the social and ethical aspects relevant to their scientific or technological fields, they may fail to think about the implications of their own daily work (cf. Patra 2011).
In the case study presented here, the innovation project leaders proved to be neither unwilling nor unable to take socio-ethical and socio-economic considerations into account. At the same time, such considerations remained 'blind spots' to them, as long as the underlying aspects and issues were not made explicit in relation to their daily practices and on-going (laboratory) activities. The tool presented in this case study enables innovators to shine some light on these blind spots. Reflection and integration of broader contexts was reached by collaborating with an external researcher from the social sciences/humanities. This 'critical outsider' helped the innovation project leaders reflect on their daily practices from a more social and economic perspective, in a way that did not compromise potential innovation project quality and success.

Study overview
In this study, a 'collaborative space' was set up in which innovators worked together with a critical outsider, on their own innovation projects (ranging from basic research to proof of concept to product development and production development), at their own innovation sites. In this space, they interpreted results from an ICT-based innovation project evaluation tool together, and considered how RRI-related aspects can be included in innovation projects.
During the preparation of this case study, the possibility and utility of socio-ethical aspect integration through such collaboration was identified as a possible first step in the process of establishing RRI in practice (Flipse et al. 2013a). It was found that innovators not only appreciated such collaborations, but could also integrate the external perspectives constructively in their on-going work. They highlighted that they now explored more research options than they would have done otherwise, and that such collaboration enabled them to better select which research options to explore further, making their innovation practices more efficient. However, more tangible evidence of the link between innovation project success and the consideration of broader socio-ethical and socioeconomic questions was desirable.
A method was therefore developed to identify innovation project Key Performance Indicators (KPIs), based not only on technological aspects but also on social and economic aspects (Flipse et al. 2013b). Based on a statistical analysis of the performance of recently completed innovation processes, KPIs were distilled that clarified why some innovation projects are more successful than others. Such KPIs concerned scientific / technological project characteristics (e.g. regarding health effects, available materials and machines), financial and economic factors (resources, customer's strategic goals), as well as social characteristics (teamwork, collaboration, societal relevance). This resulted in a digital benchmark model, which could be used to assess running projects. The benchmark is therefore based on a statistical analysis of projects run at the organisation itself, making the identified KPIs and their interrelations highly relevant and targeted.
As a next step, this concept was developed further into a preliminary software-based support tool that helps researchers reflect on their practices and explore possibilities for improvement on social, economic and technical levels. With this pilot tool, innovators could then monitor the quality of their running projects, and easily assess where improvements are possible (see activity component 1, below). After the projects are scored, they are evaluated in the collaborative space (see activity component 2, hereafter).

RRI activity component 1: Interaction with a digital support tool
The first step in establishing RRI in industrial project practice at NIZO, was learning which RRI aspects are relevant to consider in relation to project success. To do this, the innovators score their projects using the pilot version of the software tool. This allows them to compare their running innovation projects with the benchmarks of the earlier projects (Flipse et al. 2014). Since the comparison is based on similar projects, from the same organization in the same sector and context, the tool can be expected to provide relevant input for the organization for which the tool was developed. The pilot tool produces a graphical representation of project performance, which also presents information on many 'blind spots' that researchers might have, e.g. regarding socioeconomic relevance and impact. This is visualised in Figure 1.
The pilot tool displays performance on various KPIs (green lines) and the overall project (blue line) in relation to successful and less successful previous projects 1 . When zooming in on one specific KPI, the dashboard displays the scores of various elements from which the KPI is constructed. E.g. the KPI 'Customer Insight' consists of 5 elements that can all be visually represented. This way, the user gets information on e.g. which KPI-specific elements of this KPI to improve on. Additionally, the tool can display scores on a single KPI by various different project team members. This way, if two team members disagree 1 Industrial projects usually distinguish two main success evaluators for projects. First, projects can be considered successful if the client is satisfied with the procedure followed (and possibly also the outcomes, but not necessarily so). This is mainly important for contract research organizations and non-profit research activities. Second, projects can be successful if they generate more money than they initially cost. This is mostly important for commercial organizations' internal R&D projects. In this case study, the first criterion for success is adhered to: projects are considered successful if the clients are satisfied afterwards. This was assessed using project evaluation forms. on one particular KPI, they can more easily resolve differences, possibly complementing one another's viewpoints.

RRI activity component 2: Interaction between innovation experts and critical outsiders, using the tool
Once the KPI scores are known, the innovators know which elements are going well and which elements can be improved on. Yet the relation with RRI needs to be made explicit. The active inclusion of socio-ethical and socio-economic considerations in innovation projects can be realised with a method called 'Midstream Modulation' (MM 2 ). In MM a 2 In MM, the 'midstream' refers to the processes taking place between 'upstream' funding and 'downstream' adoption of R&D in society (i.e. actual R&D activities). The value of MM lies in allowing researchers to further understand their motivations for technical decisions and broadening those decisions with contextual insights, during the actual phase where innovations take shape, i.e. the innovation sites' laboratory floors. critical outsider (usually a scholar from the social sciences / humanities) interacts regularly with innovators at their own innovation sites for a period of 12 weeks, to incrementally 'broaden' research decisions with social and ethical considerations.
MM starts with a pre-interview in week 1 and a post-interview in week 12 in the form of a semi-structured questionnaire. The differences in answers to the questions given in the pre-and post-interview by the researchers provide insights into changes of awareness on the social and ethical dimensions of their work. During the weekly interviews (see Figure  2 and Footnote 3) in between these pre-and post-interviews the outsider and the innovator discuss research decisions with regard to research opportunities, considerations, alternatives and outcomes (i.e. 'modulation' of decisions), based on the outcomes of the evaluation tool 3 . This makes decision-making processes more visible, allowing the identification of possibilities for enriching these decisions with socio-ethical and socio-economic contexts.

Example of engagement activity
Through the collaboration with an outsider and with support from the pilot ICT tool, innovators reflect on their on-going practices, and together explore possibilities to expand research considerations beyond usual socio-technical context. Below, an example is given of how societal context and an RRI perspective can be of relevance to researchers. In one innovator's post-interview, the critical outsider asked if there were any social goals for his project. The innovator answered 4 . This quote illustrates that before the 12 weeks of interaction with the tool and outsider, the innovator had not thought of any societal consequences, and had not considered communication with the client as particularly important. This innovator mentioned in an earlier interview that the client came to him with a particular question, which he would just do research on, without initially fully understanding the client's rationale for even starting this project. The outcome of the tool illustrated in an early project phase that the scores for the quality of communication and strategic goals were initially low.
Taking these scores as starting points, the outsider and innovator started discussing how communication quality could be increased. The possibility was discussed that the innovator did not know enough about the client's targets to address its issues properly. Hereafter, he started to ask the client more questions, which helped both him and the client to identify separate economic, technological and also societal goals. Spoilage and waste generation became increasingly important topics.
Even though these discussions did not technologically change the outcome of the project significantly, it did provide more focus on which research avenues to pursue. Because of the framing of product use in warm countries, various processing and packaging options would be less useful than others. Without communication between the innovator and the client, solutions might have been proposed that were not viable in the situation in which they should be used. As such, the interaction increased the speed of this project, and made sure that resources were spent more appropriately.
The technological focus of innovators who wish to explore all possible options for research, is a valuable asset for innovating companies. It might seem strange that such social and societal considerations as mentioned above are not highlighted upfront. As was mentioned above, innovators might be too preoccupied with their technological work, and these societal considerations may be considered irrelevant. In this case, the tool and discussions with the critical outsider further helped clarify the significance of these aspects, making the project more successful in the long run than it might have been without the tool and discussions. At least, that's what the innovators claim in this case study and what the project scorings indicate, as is mentioned below.

Impact achieved
In this case study, all NIZO's researchers demonstrated increased reflective awareness of the socio-ethical context of their work and also integrated this context in their decisions, thereby making their research more responsive to societal considerations. Simultaneously they reported improvements with regard to the technical and economic context. In contrast, projects in which the pilot tool was not used, did not report such improvements. It can therefore be hypothesized that researchers and the critical outsider were able to identify possible project problems and barriers more quickly and easily by using the tool. As such, the tool helped enhance and speed up RRI practices in the field of healthy and sustainable food/ feed products and processes.
The narrative and project KPI scoring illustrate the empirical possibility to functionally integrate such context deliberations in industrial R&D practice using critical reflection based on Midstream Modulation and an ICT based tool. It indicates that participants can usefully deploy such aspects in their work, and that doing so improves project quality. The KPIs are acknowledged by project leaders to contain relevant context elements, which are important to their on-going daily work. These aspects can be actively managed by the project leaders in their communication and cooperation within the company and with the customer.
Moreover, the pilot tool provides a way for RRI aspects to be continuously represented as a crucial part of good RRI project management, in which a range of aspects is considered beyond scientific, technological and economic ones. This way, RRI aspects can more readily find their way into on-going innovation work on the laboratory floor as an integrated part of daily innovation practice. This allows innovators to be more easily responsive to RRI-relevant aspects.

Why does it fall under Responsible Research and Innovation (RRI)?
RRI practices, following EU policy guidelines and Stilgoe et al. (2013), entail several elements that can be translated into industrial innovator actions. Four distinct features of RRI include, anticipation of societal effects (insofar as possible), reflexivity of involved stakeholders on socio-ethical and socio-economic dimensions of (new and emerging) innovations, inclusion of considerations on these dimensions in scientific and technological development processes, and responsiveness of involved stakeholders to change the shape or direction of developments in response to stakeholder and/or public values and changing circumstances. More specifically, Stilgoe et al. (2013) state that, "responsible innovation can be seen as a way of embedding deliberation on these [four elements, emphasis added, SF] within the innovation process" (p. 1570).
One can also follow the EU-policy reasoning lines, in which RRI is considered an inclusive approach to research and innovation that ensures that societal actors work together during the whole research and innovation process, aiming to better align both the process and outcomes of research and innovation with the values, needs and expectations of European society. In general terms, RRI then implies anticipating and assessing potential implications and societal expectations with regard to research and innovation (also see Appendix on RRI relevance in terms of EU H2020 action lines).
Within this case study, we focused on the midstream, i.e. the phase where research and development actions are carried out, and actual innovations are shaped. More specifically, we focused on responsiveness towards socio-ethical and socio-economic aspects, an essential prerequisite for RRI to take shape (cf. Stilgoe et al. 2012). From an RRI perspective, being responsive on the midstream includes more than taking anticipation, reflexivity, and inclusion into consideration. 'Consideration' in fact could mean that things are debated, but not actually used to develop new innovative ideas -hence the contrast between consideration and responsiveness.
In this case study, such responsiveness is embedded in innovation practices through explicit deliberation of socio-ethical and socio-economic context -including anticipation of effects, increasing reflexive awareness on broader context, and inclusion of stakeholder viewpoints through such explicit deliberations with a critical outsider. In our view, in order to make RRI elements a constructive and integrated part of innovation management, continuous and repeated consideration of such elements is crucial. By combining technical, economic and social KPIs, all the potential 'blind spots' of project management are covered in one overview. This way, RRI-relevant elements such as societal context and use implications can never be omitted.

Lessons learned
The case study shows that the combined approach using both MM and the ICT based pilot tool can be functionally used to align business-relevant considerations through KPIs with the social and ethical sides of R&D. That NIZO was willing to contribute to this study by providing participating project leaders and allowing them to spend time on this study, further illustrates the significance of this research in industrial practice. Two things apparently worked well: a positive individual effect of the approach through collaboration and the pilot tool, and an institutional effect due to the introduction of the pilot tool. The combined approach facilitates not only insight into the KPIs of project management, but also insights in how to make projects more successful from an RRI perspective, early in innovation project development.
Actively incorporating socio-ethical and socio-economic context is essential for RRI to take shape. Also in terms of corporate social responsibility the alignment of such broader contexts with innovation KPIs can be recommended. Innovators working on product design and development can be unaware of the social and ethical context of their work. This case study shows that RRI not only contributes to socially responsible innovation outcomes and practices, but can also play a significant role in actual project success when taken into account explicitly, as the example above illustrates. In contrast, if the tool is not used, such impacts on project management are not observed (also see Impact Achieved section). This is especially important in R&D activities that concern future and emerging technologies that influence our lives, e.g. in food innovation. The approach described here allows top-down corporate social responsibility efforts to become materialized in bottom-up project management. Hopefully the results and considerations presented in the case study can help inspire other researchers from the fields of natural and social sciences to set up and participate in collaborative research and innovation practices to further support and enhance RRI.
Funding: This case study was conducted for the "Responsible Industry" project. The "Responsible Industry" project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 609817.

Appendix: Relevance to the five RRI Horizon 2020 actions lines (see above)
In general terms, RRI implies anticipating and assessing potential implications and societal expectations with regard to research and innovation. In practice, RRI consists of designing and implementing R&I policy that will: engage society more broadly in its research and innovation activities; increase access to scientific results; ensure gender equality in both the research process and research content; take into account the ethical dimension; and promote formal and informal science education.
Taking the above into consideration, the approaches used in this case study were explicitly designed for the purpose of engaging society (through assessing and anticipating potential implications and societal expectations through collaborations between critical outsiders and innovators, supported by an ICT tool) in research and innovation, and to take ethics into account (through focusing on socio-ethical issues for product production and development rather than only technical and economic ones). Still, this case study does not explicitly relate to RRI in increasing public access to scientific results and ensuring gender equality. On the point of promoting science education, this case study demonstrates another possibility, namely not science education to a general audience, but societal aspect education to scientific actors. Even though this is not an explicit goal for the H2020 agenda, such 'education' to scientists and engineers can be considered imperative for RRI to take shape. The results of the case study show that the tool can successfully be deployed in innovation practice to support and stimulate RRI, by making RRI an integral and constructive part of the innovation agenda.


s2fieldsofstudy: Business Economics

text:
Franchising technologies for sustainable economic development

The article describes factors of environmental change that cause the need to form new forms of interaction between economically active market subjects for sustainable development of territories. The authors of the article analyze franchising as one of the most flexible forms of interaction in small business. Modern trends in small business show a gradual merger of the production of goods and their trade with the provision of services. It leads to the necessity to create a fundamentally new mechanism that meets the needs of the modern market. The article proposes a new complex model of franchising which combines all the specified forms.

Introduction
Today, the economy of the Russian Federation has a difficult period: there are institutional changes, the purpose of which is to develop various technologies for sustainable development of the territory. Small business plays an important role while realizing the idea of regional economic development. Small business is an important part of the functioning and socio-economic development of the territory ( Figure 1) [1]. It creates workplaces, develops and introduces new technologies, takes into account local conditions to the maximum, penetrates into areas that are disadvantageous for large enterprises, and provides a significant part of regional and local gross product. Thanks to small management personnel and simple organizational forms, it has the flexibility to change the external environment, mobility of management, quick response to customer requirements.
Small business is an integral part of the economic system of the national economy, but at the same time, as a rule, its activities are at the municipal and regional levels of the organization of socio-economic space. The results of the activity of small enterprises lead to the formation of significant parts of the economic, financial and tax potential of the territory.
Of course, the number of small businesses and the level of employment in small businesses varyy in different regions of Russia, and it can be a kind of indicator of the entrepreneurial climate. According to the Federal State Statistics Service [2] by the end of 2016, 2.77 million small business entities operated in the Russian Federation, providing more than 11 million workplaces. The total number of economically active population in Russia is 75.8 million people. They are engaged in economic activities, that is, they have regular earnings of 71.3 million, and 4.4 million people are classified as unemployed. Thus, 15% of all employees are employed in small businesses.
The total turnover of small businesses in 2016 reached 38.9 billion roubles. More than 37% of all small businesses operate in the wholesale and retail trade, it is 57% of the total turnover of small businesses. Since the economic indicators of this sector of the economy are significantly higher than other sectors and have the potential for rapid development in improving business conditions, it is important to develop mechanisms to promote the development of this small business sector in the Russian Federation. Franchising is one of the development mechanisms that have succeeded in wholesale and retail trade. It is a tool for the multiplication of successful business and cooperation opportunities [3]. In the conditions of various kinds and forms of commercial activity, forms of franchising relationships naturally change. The determining factor of franchise classification lies in its structure, or, in other words, in the franchise package offered by the franchisor (Table 1). Table 1. Classification of franchising forms.

Commodity franchising
Transfer of franchisor rights to sell goods of their own production in a certain territory. As a rule, the franchisor participates in the appraisal of premises, accompanies the process of opening branded outlets and trains staff. A franchise package in commodity franchising does not imply a lump-sum contribution and rarely contains royalties. However, the franchisee, which has franchise relations of this kind, is obliged to purchase the franchisor's products under certain conditions and in agreed amounts. About 70% of all franchises offered today in the market are exactly the franchise of the "producer-retailer" scheme.

Production franchising
Franchisor transfers rights to produce products under the franchisor's trademark and its technology, possibly using author's components, recipes or developments on a separate, strictly specified territory, usually remote from the franchisor's own production. The transfer of technology and recipes takes place simultaniously, therefore, in the franchise package there is always a lump-sum contribution symbolizing a fee for authoring technology, know-how, and further regular royalties for the entire period of the franchise agreement.

Service franchising
The franchise scheme actually represents the development of a branded dealer network. Franchisee has to provide on its territory the services of the franchisor in accordance with its standards of appearance and quality. In the structure of service franchising there are two main directions, working on fundamentally different schemes: -franchising ateliers, beauty salons, medical centers, etc., with or without a lump-sum fee and royalties, but, more often with obligations to purchase equipment, often unique, copyright, or consumables from the franchisor -franchising of travel agencies and mobile operators exists without a lump-sum fee and royalties, and the franchisor pays a certain financial reward to his franchisee for the services rendered.

"Business" franchising
It has the most complex organizational system. The franchisor provides franchisees not only with their own brand and their own technology, but with technical and marketing know-how. As a result, the franchisee is fully associated with the franchisor and becomes virtually a part of the corporation. All franchisees are centrally provided with the supply of products or raw materials, they have a uniform approach to technological processes, an assortment of goods or services, a uniform corporate style of service is maintained. Minor deviations from these rules are observed very rarely, and, as a rule, are caused by the need in a specific market.
It should be noted that the structure of franchising offers is very diverse. Current trends in the development of retail show a gradual merger of trade in goods with the provision of services. In this case, commodity franchising usually involves the production of goods by the franchisor and the implementation of his franchisee. Thus, the chain "production-tradeprovision of services" is built. Taking into account that the only clearly described and clearly allocated scheme is commodity franchising, which has replaced the usual sales activities of any manufacturer, the need to create a fundamentally new mechanism that meets the needs of the modern market becomes obvious.

Methods
The formation of the mechanism of integrated franchising, which includes the chain "production-trade-provision of services", is centered around the relationship of all participants of the franchise taking into account the specifics of their activity. In fact, these relations are displayed in a franchise package which shows the essence of business, specific technology work, recipes and unique know-how used in the work. Also, the franchise package necessarily contains financial conditions for the interaction of the franchisor and the franchisee: a lump-sum contribution, royalties, marketing fees, various forms of rewards, bonuses, compensations and so on. Since the franchise is usually formed by the franchisor (the owner of the business plan), he analyzes not only his expenses for the formation of the package, but also the costs of future periods associated with accompanying the activities of his franchisees (or the coordination of their activities), as well as the expected profit from the implementation of the system franchising in their business processes. Thus, the methodology for managing franchise relations will be a sequence of steps for the formation of a franchise offer (Figure 2).

Results
In the conditions of tremendous rates of franchising development, this form of business is constantly changing, new forms of franchises appear, they drop out of the classification format or unite various forms.
In the United States and Europe there is a form of franchising agreement. But there is a significant gap in the legal provision of franchising in Russia because this type of business relationship for Russia is relatively new, and the Russian legislative machine usually operates on the principle of post-factum regulation. Today franchise relations can be regulated by contracts of various types and they are called agency contract, dealer agreement, exclusive distribution agreement and so on. However, the most correct type of contract signed in this case will be a commercial concession agreement.
The Civil Code of the Russian Federation contains only one named contractual institution that belongs to the group of obligations for the creation and use of intellectual property objects -a commercial concession agreement. In connection with the adoption of the fourth part of the Code, containing provisions on intellectual property, the rules on the legal regulation of commercial concession have undergone serious reform. From January 1, 2008, according to the Civil Code of the Russian Federation under a commercial concession agreement, one party (the right holder) has to provide to the other party (user) for a fee for a term or without indication of the term the right to use in the entrepreneurial activity of the user a set of exclusive rights belonging to the right-holder, including a sign, a service mark, rights to other objects of exclusive rights, in particular for commercial designation, the secret of production (know-how). Thus, today the concept of commercial concession extends to licensing for the use of trademark signs, and includes the rights to use production technologies.
In general, we can say that the provisions of the Russian legislation are very soft and leave most of the provisions arising from the relationship of the franchisor and the franchisee to independent regulation by the parties. The complexity of legislative regulation Formation of a franchize of franchising lies in its continuous dynamic modification process: new forms of business, goods, types of services appear daily, commodity distribution chains become more complex, business processes in general become more complicated. Due to the fact that the legal basis of this type of business relationship in the Russian Federation is very poorly regulated, there is virtually no restriction on the franchise construction model, there is a wide scope for the formation of various formats of business relations, limited only by the imagination of entrepreneurs. Investments for the purchase of a product + + - To form an integrated franchise model consisting of commodity, service and production franchising, it is necessary to conduct a comparative analysis of the structure of these forms ( Table 2). As a result, it becomes evident that all the described forms have differences.
When creating an integrated franchising model, a priority will be technology and a unique product. Therefore, a lump-sum contribution will be absent, the franchisor will be a supplier of production technology and a partially final product, and investments will be required to organize production and marketing services.

Discussion
Modifications of franchising are directly related to the market situation and economic trends. The global megatrend of transition to post-industrialism [4,5] dictates changes in the forms of management that should guarantee the sustainable development of regional economies. These changes are aimed to form a model "franchisor, the owner of the idea, know-how, earns on copyrights". Therefore, production franchising is gradually moving from the franchisor zone to the franchisee zone, and the copyright owner only forms a business idea and accompanies its implementation. Thus, the franchisor today is a business designer [6,7].
The negative consequence of the enlargement of franchising schemes is an increase in the amount of the necessary initial investment. This factor becomes an important barrier, especially during a decline in economic activity [8,9]. The recent activation of financial groups for investing in franchising projects after the crisis of 2014 [10][11][12] has actually curtailed, and today franchising projects in Russia are almost not financed.
A possible variant of cooperation in such conditions is conversion franchising. In its classical form, conversion franchising is a scheme when some independent enterprise (of course, of a similar or related profile) joins the franchise system under the brand of the franchisor, whose business owner concludes a franchise agreement with the franchisor [13,14]. Usually this kind of franchising is used during transitional periods, when the parent company wants to leave the scheme of work through branches and its own marketing network to franchising. Thus, branches become independent (sold), actually the property of other entrepreneurs, but they continue to carry out their previous activities [16][17][18][19][20].
In consolidation and complication of franchising schemes, a modified form of conversion franchising could be suitable when the merger of an independent enterprise does not go under the umbrella of the franchisor as a branch, but in the format of merging with the operating franchisee. With such interaction, it is necessary to provide legislative support for such forms of management, up to the development of new organizational and legal forms. However, in real legislative practice it is not necessary to expect rapid changes. Therefore, to unite the franchisee in the format of a joint-stock company (non-public) may be the way out of the situation.

Conclusion
The stability of the socio-economic development of the territories is largely determined by the level of development of economic ties within them. The importance of small business can not be overestimated. Most developed countries singled out small business as one of the elements of the formation of economic stability in society. Dynamic changes in the external environment entail the need for a flexible response, including changes in forms and types of interaction of economically active subjects. Franchising is a fairly flexible form, which allow to modify existing ties and form cardinally new.
Current trends in the development of economic relations show a gradual merger of trade in goods with the provision of services. At the same time, commodity franchising, which often involves the production of goods by a franchisor and the implementation of its franchisee, entails the formation of a chain "production-trade-provision of services." This challenge of our time dictates the need to create a fundamentally new mechanism that meets the needs of the modern market.
The attempt made by the authors of the comparative analysis of the structure of commodity, service and production franchising has shown that in the formation of an integrated franchising model, a priority will be technology and a unique product. In connection with this a lump-sum contribution will be absent, the franchisor will be a supplier of production technology and partially final product, and there will be necessary investment for the organization of production and marketing services.


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Research on the Corporate Strategy’s Influence on Enterprise Development

Corporate strategy is a strategic goal that a company develops in the face of a large and complex market situation and in accordance with its external business conditions, which determines the company’s overall development in a long time. It’s a guide to the business operations’ direction and the backbone of the entire enterprise development. Firstly, this paper introduces the definition and classification of corporate strategy; Secondly, we summarize the current research status of the corporate strategy’s influence on enterprise development; Then, JD Company is used as a case study to explore the impact of its corporate strategy on its development; Lastly, this paper summarize the specific impact indicators of corporate strategy on enterprise’s development and gives the fivedimensional principle of enterprise development strategy.

Introduction
"Strategy" begins at the military field, which mainly refers to the overall layout and planning of military war. Since then, the term "strategy" has been widely used in political, business, economic and social fields, after combining with modern enterprise management, the concept of "Enterprise Strategic Management" has produced. Professor Gerry Johnson and Kevan Scholes, the two strategic managers in UK, believe that the corporate strategy is the owner's expectation to match the resources, consumers or customers in the changing environment under ideal conditions. Corporate strategy can be divided into three levels: company strategy, business strategy and functional strategy. The so-called company strategy is also called overall strategy, which is based on the enterprise's goal to reasonably allocate the resources required for the business operation in the field where the enterprise has a competitive advantage. Business strategy aims at concertizing the corporate objectives, development directions and measures to form a specific competition and business strategy for its business unit. The strategy of how to better serve the various levels of professional work (such as marketing, production, finance, etc.) in the enterprise to improve organizational efficiency is the functional strategy. GE Liang (2016) thought that the choice of technology development strategic has great significance and profound impact to the survival and development of the enterprise, so he studied the impact of technology life cycle on enterprise technology development strategy using Samsung as an example, aiming at providing some advice of technical development strategy for Samsung. Pan Yao (2018) selected KONE ELEVATOR Company as an example to analysis how can enterprises effectively and rationally use their own resources and capabilities to establish and develop core competitiveness, formulate strategic goals, and implement strategic decisions to achieve sustainable development based on the existing strategic management theory. Sun Chen (2017) did an in-depth analysis of how the external environment affect enterprises' development, aiming at providing a reference for better enhancing the competitiveness of enterprises. Liu shenao & Shi zhanzhong (2017) built the Cobb-Douglas production function based on the strategic emerging industry composite index, they measured the distortion of factor prices from 2007 to 2016 in order to explore how factor price distortion impact business' development. Feng guangshun (2018) thought that the enterprises' development penetrated into human resource management, which can enhance the core competitiveness effectively, so he did a research on how human resource configuration impact the enterprises' development strategy, whose purpose is to give advice from the perspective of human resources.

Introduction of JD
In 2004, JD officially entered the field of e-commerce. JD is officially listed on the NASDAQ Stock Exchange on May 2014, which is the first Chinese large-scale integrated e-commerce platform that successfully went public in the US. In July 2015, JD was selected for the Nasdaq 100 Index with its high growth. In July 2017, JD secondly entered the (Fortune) Global 500, whose market transaction volume was close to 1.3 trillion yuan; and in July 2018, JD thirdly entered the (Fortune) Global 500, ranking thirdly in the world after Amazon and Alphabet.
Great enterprises need firm belief and strong foundation, so it has 14 rules to help employees improve their productivity, they are rules of Value first, ABC, one belt two, Backup, No No No, seven up and eight times, nine palaces eliminated, Two rounds, 8150, 24Times, Three meetings, Assessment of iron man, Internal communication, Five open Organization. All these rules help JD stuff to work more effectively, which laid a solid foundation for the faster and better development of JD.

Corporate Strategy Development
JD changed its name from JD Mall to JD, and established JD Finance and JD Logistics. in recent years, its strategy has become more and more focused, forming an "inverted triangle strategy." The front end is the user experience, the back end is the cost and efficiency. JD gradually made clear that it should only do three business--e-commerce, finance, logistics (including cloud computing), and did not allow anyone to discuss other businesses. JD current strategic organizational structure is as follows: Figure 1. JD current strategic organizational structure JD strategy transformation is mainly reflected in the company strategy (from a pure e-commerce strategy to a comprehensive e-commerce to a social e-commerce) and business strategy (from a single mall strategy to a mall, finance and logistics). The major events of its strategic transformation and development are as follows:  In 2018, JD strategy focuses on cloud computing and unbounded retail. In the transformation of technology, JD has formed a distinct ABC technology development strategy. In the field of artificial intelligence (AI), JD launched the open artificial intelligence platform NeuHub with accurate data accumulation and rich application scenarios; in the field of Big Data, it has long industry value chain big data resources and excellent data quality, and established the first national drone public welfare rescue team. In the field of Cloud Computing, it will provide RaaS (Retail-as-a-Service) solutions as a retail infrastructure service provider, and independently developed the first cloud computing machine JD System 360.
In terms of unbounded retail, from 2017 onwards, JD has developed its industrial layout with the concept of openness, symbiosis, mutual benefit and regeneration in the unbounded retail landscape of "unlimited scenes, boundless goods, people and enterprises", aiming at actively promoting to "retail + retail infrastructure service providers" strategic transformation and redefining cost, efficiency, and experience on the basis of "knowing people," "knowing the field," and "knowing goods". In 2018, JD teamed up with Google, QIY, MUJI, QM, etc. to open online and offline services, and invited international brands MARY KATRANTZOU, CARANDACHE, BALENCIAGA, BOSS, JUDITH LEIBER to continue to stay in the world.

The Influence of JD Enterprise Strategy on Its Development
JD strategic adjustment of its enterprises at different stages is the adaptation to the industry's environment and market development trends. The adjustment of these strategies also enables JD to develop steadily. The transaction volume during the year increased by 130,000 times. JD average annual compound growth rate is close to 150%, and its service covers more than 1 billion users in China. The financial report for Q2 in 2018 shows that its net income has reached a new high of 122.3 billion yuan, a year-on-year increase of 51%. Among them, logistics and other services revenue increased by 151% year-on-year, JD Mall's operating profit margin reached 1.1%, a significant increase from 0.8% in the same period of last year. By the end of June 30, 2018, the number of active users in the past 12 months reached 313.8 million.

Impact Indicators of Corporate Strategy on Enterprise Development
The corporate strategy determines the direction and goals of the company's development, which is related to the fate of the company's life and death. What to do is more important than how to do it. Therefore, a good corporate strategy is the decisive factor that determines the development of a company in the right direction. The dimensions of corporate strategy's impact on Enterprise Development are shown in the following figure: Advances in Social Science, Education and Humanities Research, volume 266

Five-Dimensional Principles for Enterprises to Develop Strategies
Corporate strategy is a general term for various enterprises' strategies, including competitive strategies, marketing strategies, development strategies, brand strategies, financing strategies, technology development strategies, talent development strategies, resource development strategies, etc. Although there are many kinds of corporate strategies, the basic attributes are the same, they are all strategies for the overall, long-term and basic problems of enterprises. Therefore, the formulation of corporate strategy must rely on the comprehensive environment of the industry and the comprehensive consideration of its own resources. The general enterprise should consider the following dimensions when formulating strategies:

Dimension 1: Thinking Strategy
To create a sustainable competitive advantage, enterprises must establish a correct strategic. Thinking strategy is the core factor of enterprises' competition. To become a first-class enterprise, we must have a first-class thinking strategy. Firstly, enterprises must carry out strategic analysis, and adhere to the strategic view of both internal and external considerations; Secondly, companies need to make strategic development choices. Enterprises need to decide whether to leave the original industry or enter the new industry; Lastly, enterprises need to establish a strategic direction to win the competition, which means to cultivate the strategic competitiveness of enterprises and integrate corresponding industrial resources to win consumers' choice and loyalty.

Dimension 2: Business Strategy
All companies are constantly facing the improvement of customer expectations and the increasingly fierce competition. Company needs to carry on their business strategy to optimize the business structure and allocate resources reasonably. Enterprises need to understand and adapt to the changing characteristics of customer needs, correctly understand the trend of business model transformation, and formulate market/product/manufacturing/sales/service/ strategies according to customer needs.

Dimension 3: Operational Strategy
All strategies will eventually return to the actual operation of enterprises. So scientific and organic operation management is a necessary condition for long-term stable development and competitive advantage. The idea of operation management is to continuously improve the operation and technology of business, and adopt advanced management ideas and methods of today's business world. Companies can develop operational strategies in terms of quality, delivery speed, cost, resilience to demand changes, flexibility and speed of new product development, and support products or services related to specific products.

Dimension 4: Informational Strategy
In the process of money from goods to value-added money, capital turnover is generally less than 20% for manufacturing, and 80% of time is concentrated in procurement, transportation, sales, inventory and other processes. Therefore, enterprises need to carry out information reform to use emerging technologies such as cloud computing, big data, artificial intelligence, and Blockchain to help enterprises integrate data in procurement, manufacturing, transportation, sales, and inventory to effectively integrate resources. Aiming at accelerating capital turnover and generating many new capital resources. The competition of enterprises is not the competition of individual enterprises, but the competition of the entire supply chain of enterprises, so the timely informational strategy will help enterprise to integrate all internal and external effective resources.

Dimension 5: Transform and Cultural Strategy
In the case that management tools and ideas are in urgent need of innovation, it is necessary to improve the organizational structure of the enterprise and the internal control system. Transform strategy is based on the study of organization's positioning, structure, rules of internal operations, rights and benefits distribution systems, business processes and so on. Organizational change is a long-term dynamic process, correct change will bring about earth-shaking changes to the enterprise, stimulating the company to enter a higher stage. At the same time, culture is the source of corporate competitiveness. That is to say, corporate culture is a supplement to the corporate management system, which is like an informal system encouraging and constraining employees through self-discipline and a sense of mission.


Justification of the methodological approach to formation of the parties of innovation activities in holdings

The paper presents the problematic area of the formation of the parties of innovation activities in holdings and its methodological justification. The objective preconditions for differentiating intersubject interactions as a part of innovation activity with the participation of holdings are considered. Features of the formation of innovation strategies and goal-setting mechanisms are structured; their features in large enterprises are emphasized. The importance of determining the optimal parties of the innovation network as a factor of increasing the efficiency of implementation of innovation activity is substantiated. The external and internal environments of the holding are considered as sources of attracting participants of innovation activity. Features of the procedure for selecting the structure of innovation activity, complicated by the conditions of multiproject environment, are presented. Positive effects from the introduction of the scientific approach to the determination of the parties of innovation activity were revealed.

Introduction
Innovation activity should combine the rational organization of fundamental and applied scientific research and, first of all, be oriented to the maximum effective realizability within the real production. The use of innovation developments in the modern economy largely depends on the effective interaction between units and entities that carry out fundamental and applied scientific research, design and engineering development, manufacturing, and marketing research. In this regard, the issues of economics, organization and management of the interaction of innovative organizations that ensure the efficiency of innovation processes and, ultimately, strategic innovation development, are becoming one of the most relevant.
Innovation activity is characterized by a high level of risk, significant expenditure of financial and other resources, as well as complexity and duration, which requires simultaneous and mutually agreed participation in the implementation of innovation projects of a significant number of entities.
In scientific works, attempts were repeatedly made to systematize the parties of innovation activity from the standpoint of identifying similar features and functions in the innovation process, the role played, and the innovation potential. [1][2][3][4][5] Among the common disadvantages of the proposed classifications, it is possible to identify an excessive level of detail, based on the insignificant differentiation of subjects, and, conversely, too broad consideration of subjects that do not allow obtaining sufficiently accurate and reliable results. Besides, insufficient attention is paid to participation of holding companies in innovation activities, which is of particular importance, since large business, as a rule, is recognized as one of the most innovatively active market participants. Among the characteristics of large enterprises that allow them to form competitive advantages, it is possible to emphasize stability under the influence of destructive factors of the external environment, extensive opportunities for diversification of activity, preferences in attracting funds from the state and credit institutions, the effect of the scale of production, and a significant concentration of material, labor and other resources. [6][7][8][9] However, the issues of the operation of large enterprises in the innovation environment, their role and the mechanisms of innovation activity have not been adequately reflected in scientific research. At the same time, it is necessary to take into account that the innovation activity of the holding is further complicated by the fact that, being essentially a set of economic units characterized by considerable independence, it acts as a single entity. As a consequence, it is important to consider the processes of formation of the structure of innovation activity in large business associations.

Materials and Methods
Management of innovations in holdings allows solving a number of problems aimed at increasing their efficiency and performance. At the same time, the range of problems to be solved is largely determined by the membership of innovation activity. Therefore, the process of analyzing the formation of the parties of innovation activity precedes the identification of its characteristics, which will determine the membership and the nature of the relationship between participants, sources and procedure for financing, methods of managing the innovation process, and a number of other characteristics.
Innovation activity of large enterprises is represented by a complex of innovations of various types, which, first of all, should be taken into account in the strategy. If innovations are implemented as an instrument of adaptation to environmental change or crisis management, this aspect should also be taken into account in the tactics of managing innovation activity. Since innovations are a powerful tool for influencing a company's state, its status and relations with other market players, before setting the goals of innovation, it is necessary to analyze the previous experience of achieving the goals, objectives and priorities, the current position of the organization, its strengths and weaknesses, and also the available tools, technology, and organizational and managerial potential. It is also necessary to try to predict the potential market change, the changing needs of consumers and take into account the difference in the timing of achieving the goals, since most of the goals of innovation can be achieved only over a long period of time. As a rule, the goals of innovation activity correlate with the goals of the strategy of activity or tactics.
The goal setting procedures in innovation activity have a fundamental difference from other directions, since, on the one hand, the implementation of innovation has an unambiguous, certain and achievable goal. On the other hand, based on the multistage nature, uniqueness and non-reproducibility of the activities carried out, there is a need for regular implementation of goal adjustments by all involved participants according to the results of each stage of the innovation process. For each business unit and subsidiary, it is necessary to take into account a lot of factors, take into consideration the multitasking strategy of each division and form the tree of the goals of all business units, taking into account the development mission of the holding. However, the algorithm for building a strategy unique for each business unit, and the corresponding mission of the holding as a whole is identical at each level. A high level of coordination of the participating subjects and the efficiency of their interaction under the given conditions can be achieved only if the goal setting is correct, which, in this case, must ensure the unity of the common goal while respecting the interests of each of the subjects, as well as the reality of its achievement within the planning horizon.
When determining the parties of the holding's innovation activity, it is of particular importance to take into account the specifics of the holding as an integrated structure. Despite the fact that the holding represents the unification of some finite number of enterprises, it acts as a single entity. Accordingly, the categories "external environment" and "internal environment" are applicable to the holding company. The parent organization, subsidiaries and affiliated structures, branches, subdivisions that are part of the holding are subjects of the internal environment, and other entities that are not part of the holding and function independently are the subjects of the external environment. Features of subject interaction within the innovation activity will be different depending on whether external subjects will be involved in it and what functions and tasks will be delegated to them.
Based on the above, it can be concluded that the choice of the parties of innovation activity is an important aspect that allows forming an innovation network that meets the requirements of a particular project. The innovation network is characterized by a complex set of interactions, complicated by possible contradictions in the interests of the subjects, as well as by the individual features of the internal environment of the networked organizations, which leads to the formation of interaction risks. The structuring of innovation activity of the holding company must take into account the features of selecting the optimal membership from the standpoint of the features of innovation activity as a complex, multistage, high-risk activity for creating innovation.

Results
Innovation projects are the starting elements of innovation activity and in general terms represent the organizational framework for the implementation of an innovation processbalanced, systematic, based on the methodology for obtaining knowledge, ideas and the final result. [10] For an economic entity, the result of implementing innovation will directly depend on the characteristics of the selected project. The project itself, even with a rational organization of innovation activity, can be not only inefficient, but also lead to negative consequences (both financial and other), since innovation activity affects all aspects of the economic activities of enterprises.
However, even with the optimal choice of the project to implement, the efficiency of its implementation will largely be determined by the parties of the innovation activity. Since innovation resources are distributed asymmetrically between the subjects, they have to carry out joint activity to implement an innovation project, achieving such a composition and building intersubject relations in such a way as, on the one hand, to fully meet the requirements of the project for its successful implementation, and on the other hand -to ensure satisfaction of the requirements of the subjects to achieve a sufficient level of profitability from their participation in the network. Taking into account the complexity and diversity of innovation activity and the need to ensure sustainable development, it is necessary to determine the parties of innovation activity as a set of participants involved in the implementation of the innovation process and having a direct impact on the creation of innovation or promoting its introduction, development or spreading. The variety of types of innovation projects generates a variety of economic ties between their participants not limited to a single concept. It should be noted that innovation activity is carried out by subjects of various sectors of science with different goals, functions, approach to the implementation of innovation activity, and sources of funding.
As it was already mentioned, the external environment of the holding is not only a factor that generates forces influencing the efficiency of innovation activity, but also serves as a source of opportunities for expanding scientific and production ties and gaining experience in innovative interaction with entities that are not part of the holding. Special attention should be paid to the analysis of the external environment, since it is the external environment that determines the management decisions that help the company to function best in it. Without taking into account the factors of the external environment at each particular moment of time, it is impossible to guarantee the optimality of the membership of innovation activity. When studying the factors of the environment of the holding, it is not so much the values of the indicators (factors) that are of interest, but how they affect innovation activity.
Along with the analysis of the external environment, in order to develop an innovation strategy, it is advisable to analyze the internal environment. This process is proposed to be carried out in two directions: a primary analysis based on the features of innovation activity, which are characteristic of a group of enterprises united by common features, and also an in-depth analysis that identifies the individual features of the particular enterprise under consideration (Fig. 1). The same subject can be part of the innovation network for several ongoing projects simultaneously. This may concern both the internal subjects of the holding engaged in innovation activity and external ones. This will be facilitated by the existence of partnerships and cooperation agreements with other enterprises, research institutes, universities, and other entities, ensuring not one-time but regular interaction in the field of innovation activity.
Thus, the same subject can simultaneously be a participant of several innovation projects. The composition of internal subjects should be determined based on the needs and functions performed. However, involving the same subject in the process of implementing a large number of projects may lead to a decrease in the efficiency of its work, deterioration in the quality of work or failure to meet the planned deadlines for their implementation due to excessive workload and dispersion of resources. The subjects external to the holding are responsible for the performance of work in accordance with contracts or other relevant documents and, therefore, independently assess their ability and willingness to participate in a particular project.
The set of subjects of the holding's innovation activity under the conditions of multiproject environment is shown schematically in fig. 2. Consequently, multi-project environment is a factor that hinders the process of managing innovation activity of the holding and imposes special requirements to the processes of forming the structure of innovation activity. Determining the degree of dependence of work performed in various projects, their level of "adaptability" and priority is an important aspect of innovation management. An equally important aspect is the choice of project selection criteria, which allow simultaneously evaluating the project comprehensively, maintain a certain level of materiality (prioritization) of criteria, and most importantly, ensure high speed and accuracy of project analysis procedures.
Scientific approach to formation of the parties of innovation activity, taking into account the above factors and characteristics, will allow achieving the following advantages when implementing the innovation process: -ensuring the safety and balance of the internal environment of the holding due to the careful selection and analysis of subjects for interaction; -improving the quality of fulfillment of obligations under the innovation process by an external subject as a result of reducing the likelihood of opportunistic behavior; -increasing the efficiency of the communication system both within the holding and with the subjects of the external environment, which will minimize the possibility of incompleteness, untimely receipt, corruption, misinterpretation of information and the possibility of its leakage; -using the accumulated knowledge base, unique equipment, highly qualified personnel of the external subject in the absence of their own capabilities; -reducing the risks of default on obligations by the external subject as a result of unforeseen factors (loss of solvency, eligibility, etc.); -focusing efforts and resources on those operations that are effectively carried out by the holding's own forces, and those that are strategically advisable to keep under its control; -reducing the possibility of errors arising from the complexity of the mechanisms for intersubject transfer of intellectual property (completed/unfinished innovations), the According to [11], the parties and nature of the interaction, taking into account the above directions, should be determined taking into account the following factors and conditions: -conditions for the emergence and development of subjects of innovation activity; -the degree of diversification of business processes and phases of the innovation cycle, the order of their redistribution; -the composition and structure of the innovation potential of all prospective subjects; -the level of competition in the industry, the type and structure of the industry market.

Discussions
Creating a mechanism for the interaction of subjects in order to promote high-tech products on the domestic and foreign markets, contributing to the achievement of maximum efficiency in the implementation of innovation projects through the implementation of a set of concerted and coordinated actions, is an extremely important task. [12] Innovative intersubject interaction is specific, arising from the features of the innovation process itself and different from typical relations regarding the sale and purchase of goods, works, services. These features are aggravated by the presence of a complex system of relations within the holding itself. Consequently, it requires the allocation of specific risks of the holding's innovation process with the involvement of subjects of external environment.
Due to the complexity and other features of the parties of innovation relations, it follows that civil law pertaining to the intellectual property institute, as well as the law of obligations that mediate the circulation of property and non-property rights, and norms of contractual structures on the procedure for experimental design and research work is not enough. The implementation of the model of inter-company interaction requires a revision of existing ideas about management related to the level of the method and control, protection of intellectual property, training and integration. Inter-company interaction, in turn, allows economic agents to maintain a balance between self-organizing and controlled behavior, combining innovative diversity and freedom of activity with necessary level of integration.

Conclusion
Innovation management is a complex process that does not involve the use of "template" methods of management due to the features inherent to innovation. The choice of the innovation management structure in the holding will have a significant impact on the efficiency of innovation activity. Structures are distinguished by the degree of centralization and directivity, the direction of the totality of flows arising in the course of innovation activity, as well as the nature of interaction between divisions, subsidiary (dependent) companies and external subjects.
The scientific approach to the choice of the parties of innovation activity is the most important aspect that allows formation of the innovation network that meets the requirements of a specific project. The innovation network is characterized by a complex set of interactions between the subjects, complicated by possible contradictions in the interests of the subjects, as well as individual features of the internal environment of the organizations participating in the network, which leads to the formation of interaction risks. The process of structuring innovation activity of a large holding company must take into account the specifics of selecting the optimal membership from the standpoint of the specifics of innovation activity as a complex, multi-stage, high-risk activity for creating innovation.