Depreciation as a Source of Industrial Enterprises’ Investment Activity: An Uncommon View
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Depreciation as a Source of Industrial Enterprises’ Investment Activity: An Uncommon View

Authors:

Fyodor Ya. LEGOTIN Dr. Sc. (Econ.), Professor of Enterprises Economics Dept.

Abstract:

The article clarifies the possibilities to apply multiplicative properties of depreciation for assessing the growth potential of industrial enterprises’ innovative activity. The author views depreciation as the primary way of massive modernization of the fixed assets and as the method for extended reproduction of new equipment. We develop a detailed system of parameters determining the mechanism of action of the depreciation fund of an industrial enterprise and justify the algorithm for calculating a depreciation multiplier- accelerator. We propose the idea that the depreciation multiplier method might be a significant tool of the policy of scientific-technological development that ensures the growth of Russian industrial enterprises’ innovation activity.

Keywords: INDUSTRIAL ENTERPRISE, DEPRECIATION, MULTIPLIER, FINANCIAL-ECONOMIC MECHANISM, INVESTMENT ACTIVITY

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For citation: Legotin F.Ya. Depreciation as a Source of Industrial Enterprises’ Investment Activity: An Uncommon View. Upravlenets – The Manager, 2017, no. 6(70), pp. 48–54.