Economic Effectiveness

Economic Effectiveness

  • Submitted By: scrobo
  • Date Submitted: 12/01/2008 1:26 PM
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Expert system FOR economic evaluation of technological projects*

Bohumil Hlavenka** & Roman Kubík***

Received: 04. 12. 1999. Preliminary communication
Accepted: 05. 02. 2000. UDC: 001.894

Apart from the technical level, a basic tool for decision making and realization of the technical innovation project is also its economic effectiveness. It is assessed by comparing expenses and effects with respect to all-society interests and standards valid in a relevant period for the areas of technology, economy, ecology, safety of work, etc.


In practice, there are usually more development project proposals of scientific and technological, investment and rationalization. It is necessary to choose the proposal that has the greatest benefit both for the society and the investor (Synek et al., 1996). When we compare expenses with benefits, the decisive criteria for economic evaluation are as follows: return time, profitability and risk (Konečný, 1996). Under the evaluation of investment efficiency in a broader context, we understand the analysis of results and benefits of investment, their comparison with social and economic objectives of the society, a complex analysis of data and indicators, and their comparison with comparative bases, an analysis of variances from comparative bases, and an analysis of decisive factors, influencing effects and requirements on investment.
Up to now, there were many special terms in the area of economic evaluation (for example - costs: investment costs, production costs, fixed costs, variable costs, independent costs…) which we will not comment here. It is necessary to indicate that when comparing investment projects, it is vital to ensure they are compared at the same level in terms of time, scope, etc. To do this, the following terms have been introduced:
❑ Scope of appraisal – a set of affected objects for which the appraisal must be made;
❑ Period appraisal –...

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