The Impact of Innovation on University Financial Performance

Since innovations affect economic growth and development, the issue of its influence on a company's financial performance is widely discussed. However, there are not many studies that examine the relationship between innovation performance of a university and its financial performance. It is crucial to understand this, since innovations play a significant role in the development of universities at present. The aim of this study is to determine the relationship between innovation and the financial performance of universities. To achieve this, a dataset was collected on financial and R&D data of Russian Higher Educational Institutions from 2014 to 2022. The study incorporates various characteristics, such as publication activity, the amount of research and development work, and intellectual property, and others, in order to construct a variable that represents the accumulated Index of Innovation. This index represents the innovation performance of the university. The data was then analyzed using a panel regression model. The novelty of the research results lies in identifying the significance of the impact of the university innovation performance on its financial performance.