Scoring method as applied to innovation project evaluation for startup support

Abstract

In this paper, we present the scoring tool for startup evaluation called the MDP method (Management of Developing Projects) for an academic discussion. The MDP method implies the application of qualitative and quantitative criteria with due considerations given to personality types of main economic entities. The method’s aims are better evaluation, better business development and support to participants of the innovation infrastructure. We believe that this method is set to become a cross-functional assessment tool that facilitates the successful development of investment and innovation projects. In time of the method piloting, we applied the consistent approach to testing including 12 in-depth interviews at the qualitative phase of the research. The following empirical study included the evaluation of innovation-based cases and projects in Russian business incubators. Findings showed that a number of promising projects (calculated by business incubators themselves) substantially differs from the number that we got owing to the piloted MDP scoring method. According to the MDP method, 9 of 17 projects are only promising, while the incubators themselves decided that 14 projects met eligibility criteria. At the same time, 3 startups out of 9 were successful at the selection stage, whereas they did not meet incubator selection criteria. Anyway, they were found promising within the framework of the MDP method. An important outcome of the MDP method’s application is that in further monitoring of the most successful projects it will be possible to identify managerial skills of startup initiators by their personality type and this will consequently make it possible to develop university-based educational programs that meet the market demand.