Leveraging STEM innovation management for national development: integrating environmental sustainability and economic growth through effective innovation project management

Introduction

The importance of studying the topic of innovation and technology combined with the application of STEM, has gained relevance, especially for pioneering countries. In order to develop science, technology, engineering, and math (STEM) competencies, skills, and interests of skilled personnel, governments in developed countries support policy initiatives that promote STEM technology and innovation while utilizing engineering design.

For example, in China, technology studies play a key role in STEM engineering for several reasons. This interdisciplinary, multidimensional approach serves as a foundation for more serious manufacturing development and important strategic decisions at the national level.

Nowadays, with the globalization and transformation of the world economy, there is an urgent need to accelerate and improve the innovation process in clean manufacturing and engineering technologies. In this context, relevant trends in the development of environmental innovation and green technologies are the use of renewable energy sources (solar, wind, geothermal, and wave energy), the use of low-carbon construction, electric vehicles, and so on. Adoption of such technologies will significantly reduce carbon emissions, utilize clean energy and renewable fuels, and reduce the negative impact of manufacturing and other infrastructure on climate change. The global climate policy community is of the view that there is a need to intensify research, development, demonstration, commercialization, deployment, and adaptation of innovative clean energy production projects [2, p. 184].

According to researcher Valieva S. Yu. innovation management is of universal national importance while being complex compared to other sectors and can be enhanced by better utilizing the unique capabilities of the federal government [3, p. 280].

The purpose of the article is to explore the use of STEM innovation management for national development in the context of integrating environmental sustainability and economic growth through effective management of innovative projects.

The scientific novelty lies in the fact that a new innovative AInneco platform has been proposed, which represents a unique innovative solution in the field of project management and has a number of functions for project management and evaluation of the economic feasibility of research and development.

Materials and methods of research

The research materials are scientific works of foreign authors, and foreign websites containing statistics on startups and innovations in the USA, China, and other countries. Several scientific publications on the topic of technology application and their implementation in innovation projects were studied. The role of such technologies in terms of national importance was assessed. In the process of the research, the method of statistics, analysis, method of deduction, and generalization of the obtained results were applied.

Results of the study

To date, issues related to the national innovation system, particularly in the U.S., are considered in the context of the crisis and need to be thoroughly studied. The growing awareness of technological challenges and the need for important innovation projects have gained urgency. Therefore, STEM innovation project management for the U.S. has a special place in the strategic plan for S&T development. The country seeks to maintain and expand its global leadership. In this regard, the US government and private entrepreneurship in the form of startups invest significant resources in the development and implementation of innovation projects in these areas, achieving national goals [6, p. 40].

The field of STEM innovation management ensures the creation of new technologies, products, and services, resulting in economic growth, job creation, and improved quality of life. Criteria for evaluating success in this field include effective project management, strategic planning, commercialization of developments, and startup effectiveness. This, in turn, requires highly qualified specialists in innovation project management [1, p. 43].

According to statistics, 9 out of 10 startups worldwide fail, and less than 1% of startups manage to get into the list of unicorn startups (unicorns). This is the name given to companies that have received a market valuation of more than $1 billion. Low success rates are the result of capitalization, competition, and lack of market knowledge [21, p. 1].

Currently, there are more than 150 million startups in the world, of which 77,927 are in the United States. 1,361 startups worldwide are labeled unicorn. The failure rate of startups worldwide is 90%. Emerging founders have an 18% success rate of startups. Business owners who have failed in the past have a slightly higher success rate of 20%. One-third of startups fail due to a lack of product demand According to statistics, 137 thousand startups are launched every day [17, p. 1]. However, most of them fail before reaching the stage of formation. As of 2024, out of 150 million startups, 50 million new businesses continue to be created. But only 10% of them can sustain themselves in the long term [19, p. 1].

If we look at the statistics of startups in China, we can say that the user market of 1.4 billion people is huge. There is fierce competition among entrepreneurs, firms receive huge subsidies, and the economy is growing vigorously. In terms of the number of newly formed unicorn companies, Chinese companies have overtaken Silicon Valley with 243 startups. From January to June 2023, Chinese startups earned $25.7 billion, up 8.8 percent year-on-year. In the second quarter of 2023, Chinese startups received total funding of $11.2 billion, exceeding the funding levels seen in both the first quarter of 2023 and the second quarter of 2022 [11, p. 1].

The number of startups by country can be seen in the graph of Figure 1 [18, p. 1].

Figure 1 - Number of startups by country for 2023 (Source: compiled by the author) [19, p. 1].

Globally, 2,723 startups have reached a valuation of more than $1 billion. Of these, only 1,361 are still private and venture-funded. About 1% of startups are developed specifically as unicorns [19, p. 1].

It is known that since 2018, more than 250 new unicorns have been created every year. But in 2021, their number increased to 787. China comes in second place with 1,500 and 348 unicorn startups respectively. Other countries in the top 5 with the highest number of unicorn startups are UK, India and Germany. Table 1 provides more information about the countries with the highest number of unicorn startups (unicorns) [15, p. 1].

Table 1 - Information on countries with the largest number of unicorn startup (unicorns) (2022-2023) [19, p. 1]

Speaking about the development of innovation technologies and the opening of startups in China, it is worth mentioning the Chinese technology company Bytedance. It is a world leader among unicorn companies. Currently, its fortune is estimated at 223 billion dollars. The second most prestigious unicorn company is SpaceX with a capitalization of $137 billion [16, p. 1].

The average cost of launching similar startups can vary depending on the niche, industry, products, services and much more.

Looking at the analysis of startup launch dynamics in China from 2021 to 2023, the average value was 50.79 points, with a low of 44.7 points in 2013, and a high of 55.31 points in 2023. The latest data for 2023 is 55.31 points. For comparison, the global average in 2023 for 126 countries is 33.17 points [10, p. 1]. The global rankings for this indicator can be seen in the diagram of Figure 2.

Figure 2 - Global startup launch rankings from 2016 to 2023

Source: compiled by the author [10, p. 1]

The variation in the figures presented in Figure 2 varies depending on factors such as industry, type of products, services, and location [12, p. 1]. The following table summarizes the average startup costs in different industries globally.

Table 2 - Average startup costs by industry (2023)

It is worth saying that innovations and technologies used in China are not always patented. However, in 2022, the Chinese patent system has undergone significant changes, focusing on improving the quality of patent applications filed and turning intellectual achievements into commercially successful products [10, p. 1]. According to a study conducted by the National Research University Higher School of Economics, in the field of statistics and knowledge economy, the innovations in China's patent policy not only seek to strengthen the links between academia and the manufacturing sector but also can serve as a model for countries aiming to achieve technological independence and strengthen the interaction between research and commercialization.

Over the past 40 years, since China announced its reform and opening-up policy, the country has done tremendous work in science and technology. This, in turn, has led to the establishment and growth of a national patenting system. Interestingly, the number of patent applications in China has increased fifty-fold in twenty years, which is a significant growth rate. For example, back in 2001, China was far behind such countries as Japan, the United States, and Germany in the number of patent applications for inventions, but twenty years later it was not only able to catch up with them, but also to take the first place in the world in this indicator. This record growth in patent activity, however, has led to a decline in the quality of the patents themselves [8, p. 479-481].

Currently, for every 100 million yuan (equivalent to $13,948,200) allocated to science and innovation projects within the country, about 70 patent applications are registered through the China Patent Agency, an increase of nearly 20 compared to the rate three decades ago [15, p. 33].

On the other hand, China's patenting system is experiencing difficulties, among which are the low efficiency of intellectual property protection and respect, and the lack of active use of patents in the production field [9, p. 15]. In addition, there has been a decline in the quality of patent applications, especially noticeable among organizations engaged in R&D and innovation activities under government contracts, for which the patent activity rate in reporting documents is important. In these cases, the number of applications filed increases at the time of reporting, while references to them in other contexts become less frequent [12, p. 1]. Therefore, the need to change China's approach to patent policy and intellectual property management has become increasingly evident.

In the United States, to obtain patent protection under the law, a patentee must apply with the Patent Office, where it will be examined to determine whether the invention is patentable. The law gives patentees the right to prevent others from making, using, or selling their inventions. Comparing the patenting system in the US and China, in the US it is mandatory to report all details of the innovation, technique, or project itself to the office. In China, however, a patent form may be withheld for a number of categories of projects. Since the US has a more complex patenting procedure than China, this may affect the country's competitiveness in the future, leading to China's undisputed leadership in this sector. In the future, China will be able to consolidate its position in the global innovation market, creating serious pressure on American companies. It is also worth considering the fact that China and Russia are moving closer together, shifting the scale of technological superiority on the world stage. According to a report by the Information Technology and Innovation Foundation (ITIF), China is expected to catch up with the US in R&D spending by 2034. By 2021, spending by Chinese firms had grown in two of these sectors and remained flat in the third. With significant investment in advanced military technology and cooperation with China in various high-tech sectors, Russia remains a serious competitor. In 2020, Russia invested $42 billion in research and development, totaling $556 billion for both China and Russia, nearly equal to the United States. China's ambition to supplant the United States as the world's leading innovation economy is clear, and R&D in advanced trade-oriented industries is a key indicator of its rapid progress [15, p. 40].

To maintain national technological leadership, it is crucial to develop and implement innovation project management software that supports the commercialization of innovative ideas, with a focus on environmental sustainability projects. The author’s solution is an AI-driven web platform that provides innovative project assessment, R&D project management tools, and ideas marketplace.

Evaluating the cost-effectiveness of using platforms for innovation management

Nowadays, with technological advancement, the emphasis on STEM projects and innovation is due to the fact that they are the primary drivers of economic growth in the modern economy. Recognizing the need for STEM innovation is crucial for maintaining competitiveness in the global arena. This requires not only support for R&D activities at the national level, but also the stimulation of private investment in innovation projects [13, p. 92]. Recognizing the need for STEM innovation is a key factor in maintaining the competitiveness in the international arena. This, in turn, implies not only support of R&D activities at the state level, but also stimulation of private investment in innovation projects.

To assess the effectiveness of the implementation of any innovative project in the field of STEM, it is customary to use formulas that help to analyze the national significance in the context of the level of GDP change [4, p. 8].

As a framework, it is worth considering the AInneco platform, which is a unique innovative solution in the field of project management. The platform has a number of features for project management and evaluation of the economic feasibility of research and development. AInneco is based on a comprehensive approach to fostering innovation and supporting the economy, STEM technologies, and national security. It provides critical tools and resources that address several national challenges and have a significant impact across multiple domains.

AInneco's potential for significant economic benefits is clear. The Small Business Administration (SBA) reports that small businesses create 1.5 million jobs per year and account for 64% of new jobs in the U.S. economy. The U.S. Bureau of Labor Statistics predicts that the number of STEM occupations is expected to grow by 8% through 2029 [18, p. 1]. By supporting startups and small businesses, AInneco promotes job creation and economic growth. In addition, the platform's financial assessment tools help innovators secure funding, ensuring the financial viability and success of their projects.

In terms of contributing to culture and education, diversity and inclusion in STEM is promoted through the platform. This can be helped by initiatives such as STEM Empowerment that support underrepresented communities. Through this approach, the national priority of creating a diverse and skilled workforce grows.

If we draw on the performance metrics of a framework like IdeaScale, for example, which provides only idea management solutions, we can see that it attracted 4 million users between 2009 and 2014 [15, p. 37]. Similarly, Brightidea, which offers employee idea management software, has 2 million users [15, p. 38]. In addition, Planview has 2.6 million users [15, p. 38]. Based on these examples, AInneco's platform can attract an average of 2.8 million users:

((4 Mn + 2 Mn + 2.6 Mn) / 3) = 2.87 million users (1).

Given that the proportion of new entrepreneurs is about 0.36%, this yields 10,332 new entrepreneurs:

2.87 Mn * 0.36% = 10,332 new entrepreneurs (2).

By offering a robust platform that removes pervasive barriers to innovation, the platform adoption initiative can play a key role in creating a more vibrant and successful innovation ecosystem.

From an innovation commercialization perspective, it is understood that AInneco will facilitate the entry of many innovative products into the market. This, in turn, will lead to significant economic impact. For example, a platform like Brightidea has processed more than 2.5 million ideas, generating more than $15 billion in revenue for businesses [15, p. 38]. The figure demonstrates the significant economic potential of integrated idea management tools.

If AInneco achieves just 10% of the performance of its existing business, its market value could be an additional $1.5 billion per year:

$15 billion * 10% = $1.5 billion in market value per year (3).

Considering this factor, the potential of AInneco is quite large. In addition, AInneco differentiates itself from its competitors by its unique combination of face-to-face and web-based idea evaluation, a project management tool, and a versatile marketplace platform. This integrated approach not only increases the likelihood of success for innovative ideas, but also helps create new startups and jobs, which ultimately strengthens the innovation ecosystem.

In terms of attracting investment, for example, the idea marketplace platform connects innovators with investors, and its financial feasibility tools improve the quality of investment decisions, ensuring that promising ideas get the funding they need to succeed. Through comprehensive evaluations, AInneco's software is projected to attract $2.2 billion in venture capital and direct equity investments over five years. Considering that in the US, the venture capital industry invested $170.56 billion dollars in 2023 alone, and platforms such as IdeaScale, Brightidea, and Planview have attracted millions of users resulting in significant economic impact, and this forecast is achievable [15, p. 37].

AInneco LLC is also expected to play a key role in enhancing national security and economic prosperity by focusing on these critical and emerging technologies. For example, in 2021, approximately 61% of total venture capital investment was in software, pharmaceuticals, biotechnology, and information technology. If 61% of the projected 10,332 new entrepreneurs that AInneco will support have ventures in these sectors, that means that AInneco will be directly involved in 6,302 ventures [20, p. 1]. By supporting advances in advanced computing, artificial intelligence, biotechnology, and renewable energy, AInneco strengthens technological leadership on the national level.

In the context of environmental project implementation, AInneco supports the development and commercialization of clean energy innovations by providing financial feasibility assessments and project management tools. This ensures that new technologies are brought to market quickly and efficiently, contributing to achieving climate change goals.

Thus, by the example of efficiency calculation, the use of STEM technologies in the context of applying the capabilities of the AInneco platform in innovation management proves its necessity in the implementation of various projects and technological tools in the field of R&D. All this stimulates not only an increase in the level of competitiveness, but also creates new jobs, improves social interaction and contributes to the economic growth.

Conclusion

So, to summarize, a number of conclusions can be drawn. The final link in the innovation triangle is a sophisticated and effective innovation project management system to strengthen national relevance. Although markets and enterprises play a key role in innovation, without effective innovation management, they will not work effectively. The innovation project management system includes effective support for public investment in innovation infrastructure (including science, technology, and technology transfer systems) and, ideally, targeting specific technological or sectoral research areas [6, p. 29]. The project management system also includes funding research partnerships between industry, universities, and government, changing the corporate tax code to incentivize innovation and investment, including incentives for R&D, capital equipment, and software.

By facilitating the commercialization of innovative ideas, proposed solutions leveraging AInneco's capabilities play a critical role in promoting economic development and job creation, significantly impacting economic development in distressed communities. By targeting distressed areas for startup creation, AInneco can generate new jobs and significant revenue. For example, AInneco predicts the creation of at least 58 startups in distressed neighborhoods in the first five years, creating approximately 272 new jobs. This innovative solution will generate a total annual revenue of $156.6 million [15, p. 39].

In addition, given China's ambition to supplant the US as the world's leading innovation economy, it is clear that R&D in advanced trade-oriented industries is a key indicator of its rapid progress. AInneco platform plays an important role in maintaining a competitive advantage by offering innovators comprehensive support, from validating an idea to attracting investment. By addressing critical gaps in innovation management, economic valuation, and investment attraction, AInneco can provide technological advancements, giving an edge over other competitors in innovation adoption.

Overall, the field of STEM innovation management plays an important role in sustaining economic growth, national security, and technological leadership. Investing in STEM education, research and development, and maintaining a high level of project management competencies are key strategic priorities for the nation in responding to the challenges of the 21st century.