INNOVATIVE DEVELOPMENT IN THE CONDITIONS OF EXPORT-ORIENTED AND IMPORT-SUBSTITUTING MODELS OF INDUSTRIALIZATION

Abstract

Topicality. The actuality of problem is due to the need to reorient the economy of Ukraine to innovative development and change in this regard, the model of economic policy.Aim and tasks. The aim of the study is to determine and compare the relative costs of research and development in connection with the relative values of gross fixed capital formation and costs of machinery and equipment in parity for countries that implement import-substituting and export-oriented industrialization to justify the most effective model innovative economic policy.Research results. The studied economic indicators are calculated on the basis of the purchasing power parity of the currency (PPP). Calculations of the volume and structure of accumulation in parity indicators show certain patterns. The most important of them is the gap between the values of the gross fixed capital formation and its most important part – the cost of machinery and equipment, calculated in national currency and per PPP. Moreover, such a gap in the countries of export-oriented industrialization is small, while in the countries of import-substituting industrialization and in Ukraine, as an export-oriented economy, it is very significant. The general pattern is a higher share of accumulation in GDP in settlements in the national currency than in settlements in PPP. As a result, the calculations of the gross fixed capital formation and the cost of machinery and equipment in the national currency create an unreasonably optimistic view of the prospects for innovative economic development. It is of scientific interest to compare the structure of accumulation in the countries of export-oriented industrialization, import-substituting industrialization, and in Ukraine as an export-oriented economy. Thus, the share of accumulation as a part of GDP per capita in the countries of export-oriented industrialization is maintained at 22-42%, and the cost of machinery and equipment – at 4-8%. Approximately the same indicators remain in the calculations in the national currency. In the countries of import-substituting industrialization, the share of accumulation as a share of GDP per capita is maintained at 11-23%, and the cost of machinery and equipment – at 2-5%. Ukraine's economy, if the calculations are made in the national currency, shows a structure of accumulation close enough to that of import-substituting industrialization. However, according to the PPP, its economy provides a much smaller share of GNP and machinery and equipment in GDP – 9-13% and 2-3%, respectively.Conclusion. Distortion of accumulation indicators is associated with a significant deviation of the official exchange rate of the national currency from its purchasing power parity. The small scale of accumulation calculated in parity indicators characterizes the narrow base for research and development and the small potential for their introduction into production.