Decision-making in conditions of expansion of eco-innovations based on the socioeconomic effects in the system “company-region-state”

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The article examines the current issues of managing the effectiveness of eco-innovations and their impact on the “company-region-state” system using the example of waste management in Ukraine. The goal of the article is to justify the choice of an effective eco-innovation financing strategy, in which the most significant socio-economic effect is achieved for the investor. Systematization of literary sources and approaches to solving the problems of innovation management enables to determine an appropriate strategy to support resource-efficient activities in the region considering the economic efficiency of eco-innovations. The choice of mathematically sound management decisions in the system “company-region-state” should be made in respect with the consequences for the sustainable development of the region. The article presents the developed approach to calculating the sequence of investment in the management of eco-innovations using the example of solid waste management. The research methods are based on systematic approach, decision theory, and the Bellman dynamic equation. The system of innovations concerning solid waste management in the city of Sumy was profoundly studied. The research empirically confirms that the most effective strategy is to build a waste sorting station using a separate waste collection. The results of the study also substantiate that the implementation of solid waste separate collection in the city of Sumy currently requires a change in investment approach.

Acknowledgment
This research was prepared as a part of the scientific project “Modeling the Transfer of Eco-Innovations in the Enterprise-Region-State System: Impact on Ukraine’s Economic Growth and Security” (No. 0119U100364) and “Development of fundamental principles of reproduction mechanism of the social and economic development during the Third industrial revolution” (No. 0118U003578), which were financed by the state budget of Ukraine.

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    • Table 1. Volumes of solid waste in Sumy
    • Table 2. Weighted average morphological composition of SHW in containers of residential buildings in Sumy, 2019
    • Table 3. Morphological composition of mixed municipal solid waste in Sumy and cost estimate of recyclables in annual volumes of household waste
    • Table 4. Estimated data for choosing the option investment strategy
    • Table 5. Calculation of the maximum payoff in the first variant
    • Table 6. Calculation of maximum winnings for options
    • Conceptualization
      Olena Shkarupa
    • Data curation
      Olena Shkarupa
    • Formal Analysis
      Olena Shkarupa
    • Methodology
      Olena Shkarupa
    • Project administration
      Olena Shkarupa
    • Software
      Olena Shkarupa
    • Supervision
      Olena Shkarupa
    • Writing – original draft
      Olena Shkarupa, Polina Kucherenko
    • Funding acquisition
      John O. Aiyedogbon
    • Validation
      John O. Aiyedogbon
    • Visualization
      John O. Aiyedogbon, Polina Kucherenko
    • Writing – review & editing
      John O. Aiyedogbon
    • Investigation
      Polina Kucherenko
    • Resources
      Polina Kucherenko