Abstract
Purpose – to study the possibilities of institutional theory to establish a modern theory of economic growth, including the factors of institutions and technologies changes. These factors are a set of rules with high coercive force to the agents’ action form a particular mode/model of their adaptation, together with other institutions. Research Methodology – the neoclassical models of economic growth, which may include institutional factors and to study their impact on the growth and change of the factors, into the business practice are applied. The key scientific problem is to choose the right market Institute for a proper way of technological development. The authors use the micro-level analysis of the agents and institutions’ interaction in the process of new technologies appearance. Morphological and taxonomic analysis in order to highlight the models of technological development and economic growth had been applied. Findings – the research results may enrich an economic theory and practice in the area of business models applicability. The findings may assist a business community to influence the general technological development within the national institutional systems. Research limitations – due to the fact that different institutions, structures and technologies act on the economic dynamics at the same time, separating their influence is an independent scientific problem that is not solved in all cases. However, the set of considered institutional factors forms and provides a kind of “manufacturability” of economic growth. Practical implications – the so-called institutional macroeconomics as a practical discipline (which has a very close connection with behavioural macroeconomics) may assist to explore the economic growth from the point of view of changing institutions (firms, business community), labour markets and information – technical and technological changes. Originality/Value – the value of the research consists in the systematization of institutional factors affecting the economic growth, conducting a morphological structural analysis of growth types, which allow identifying eight main growth trajectories in business activity.
Highlights
There are two main branches of the research in institutional theory: the study of institutions and institutional changes and the study of technologies and technological changes
It is necessary to use microeconomic results of new institutionalism at macro-level of the analysis of economic growth problems (An attempt to create harmonious descriptive institutional theory explaining macroeconomic changes through the changes on micro-level and, in particular, economic growth, was made by Mansur Olson in the book “The Rise and Decline of the Nations” (1982). He linked the change of the number of distributive coalitions in the society with the effect of inhibition of new technologies introduction, that is accompanied by redistribution of resources and braking of economic growth, complicates regulation, increases costs of public administration (Olson, 2013)
Interdependence of the countries will influence the rate of economic growth in each country, but this interdependence is provided by the terms of trade, investments, technologies transfer, cooperation in the field of science and techniques, joint researches and development, programs of training and corporate cooperation and other institutions
Summary
There are two main branches of the research in institutional theory: the study of institutions and institutional changes and the study of technologies and technological changes. The detailed and evasive definition is given by Menard In his opinion institution is a complex of social and economic rules functioning in a certain historical period over which individuals or groups of individuals have no power both in short-term and medium-term periods. In the framework of modern approaches in the theory of economic growth, the features of the influence on the economic dynamics of various factors are studied, with an emphasis on the factor of scientific and technological progress and technological changes. We’d focused upon the institutional and technological factors of economic growth, using the accumulated knowledge within the framework of the modern growth theory (Alonso-Carrera & Raurich, 2018; Gabardo, Pereima, & Einloft, 2017; Samaniego & Sun, 2016; Brancaccio, Garbellini, & Giammetti, 2018; Iamsiraroj, 2016; Felice, 2016; Aguirre, 2017; Bartolini & Santolini, 2017; Balachandran & Williams (2018), to show the individual problems and unresolved issues. Particular emphasis was placed on the demonstration of various possible regimes and types of economic growth, based on the assumption of the technological function of the economic system, which predetermines possible strategies for scientific and technological development and for economic growth
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