Article 19. Risks of innovative activity, methods of their assessment and reduction

Risks of innovative activity — the likelihood of failure to achieve the goal of innovative activity, including failure to implement an innovation project.

Risks of innovative activity can be political, organizational, financial, market, commercial, industrial, investment and environmental.

Risks of innovative activity can be determined and assessed by the subjects of innovative activity independently or by other persons in accordance with the concluded agreements.

Risk assessment of innovative activity is carried out in order to reduce or prevent possible damage, including for making a decision based on the feasibility of financing an innovative project.

The following methods can be used to reduce the risks of innovative activity:

distribution of risks of innovative activity between subjects of innovative activity and the state;

reallocation of resources between other innovative projects;

the use of insurance mechanisms to cover the risks of innovative activity.

Lost profit is not taken into account when assessing the risks of innovative activity.

Subjects of innovative activity have the right to assess the risks of innovative activity based on the technical or economic characteristics of the innovation project and its implementation.