The Necessity of Developing Management Accounting of Innovation Capital within the Innovation Management System

Abstract

Changes in the external environment of enterprises since the late 20th century have necessitated alterations in managerial accounting, leading to the invention and implementation of new methods and tools. These adaptations aim to ensure the relevance of accounting information to the emerging informational needs and inquiries of users in the knowledge-based economy. The evolution of managerial accounting from a mechanism for enforcing control mechanisms to a tool for providing informational support for managerial decisions, policies, and strategies by furnishing relevant financial and non-financial information has rendered it the most promising informational system. Its implementation enables the creation of long-term enterprise value amidst the complexities of the business environment and the digitization of the economy. This article substantiates the necessity for developing the information provision system of innovation management within the context of the knowledge-based economy. It analyzes the primary requirements that information systems must meet to generate information about enterprise innovation capital. The shift in managerial accounting methodology is characterized as a response to the need to ensure the relevance of information provided to management. The reasons for the necessity of employing managerial accounting in innovation management are identified. The limitations of financial accounting systems and the priority of using managerial accounting to inform management about the state and results of enterprise innovation activities are determined. The importance of developing cost management control in innovation activities is substantiated. The analytical capabilities of managerial accounting systems as a means of managing enterprise innovation capital are examined. Information security about innovation capital in the managerial accounting system in the formation of the knowledge-based economy is investigated. The proactive role of management accountants in managing enterprise innovation activities in the formation of the knowledge-based economy is described. The outlined reasons characterize the main trends occurring in managerial accounting (development of methodology according to management needs, formation of the knowledge-based economy, and digitization of business processes), providing significant advantages over other information systems and confirming the necessity of using it as a basis for shaping the informational space for managing enterprise innovation activities.