Abstract
By the case of the economic development of Great Britain, the hypothesis was verified that innovations at the macroeconomic level should accelerate economic growth and at the same time reduce development risks, stabilizing this growth, reducing its fluctuations under the influence of market factors. The economic development of Great Britain is investigated in 25 economic cycles for the period from 1830-2020. Economic development was investigated according to the parameters of economic growth and development risk in each of the considered cycles. Four types of economic development policy are theoretically described in terms of the dynamics of changes in growth and risk between the previous and subsequent cycles including progressive, regressive, aggressive and conservative. In relation to the identified periods of progressive development policy in Great Britain, the institutional innovations that led to this type of development were investigated. Among them was the great economic reform of the early Victorian era, the course of social or new liberalism and the popular budget before the First World War, the activities of the first Labor government immediately after this war, economic recovery after World War II in combination with the Marshall plan and nationalization, the era of the Conservatives and the politics of New Labor at the end of the 20th century. The study showed that the implementation of authentic national culture and institutions complementary to the existing authentic culture institutions of institutional innovations leads to a simultaneous decrease in the risk of development and acceleration of economic growth, which can be considered the most favorable policy of macroeconomic management of entrepreneurial activity in order to accelerate the application of technical and commercial innovations.
Highlights
The issue of managing innovative activity in the postindustrial world is acquiring basic, strategic importance for economic development, since innovations have become the main source of wealth, and not merely an additional factor of competitiveness, as it was peculiar for the industrial era
The study showed that the implementation of authentic national culture and institutions complementary to the existing authentic culture institutions of institutional innovations leads to a simultaneous decrease in the risk of development and acceleration of economic growth, which can be considered the most favorable policy of macroeconomic management of entrepreneurial activity in order to accelerate the application of technical and commercial innovations
Under pressure from free traders, foreign trade duties and indirect taxes were gradually reduced, which was balanced by an increase in income tax, and was reduced working hours, the Bank of England received central status. These transformations are defined by historians as a great economic reform that led to a drop in development risks and the highest growth rates for the UK economy in the 19th century
Summary
The issue of managing innovative activity in the postindustrial world is acquiring basic, strategic importance for economic development, since innovations have become the main source of wealth, and not merely an additional factor of competitiveness, as it was peculiar for the industrial era. Economic science does not give an unambiguous answer with what tools, methods, means, institutions it is possible to effect on the subtle matters of the creativity of innovators and the activity of entrepreneurs. Most researchers identify practices of influence at the microeconomic level: creating conditions for innovative activities of organizations. At the macroeconomic management level, research does not go beyond descriptive classifications. One of the first to analyze the results of economic activity over long historical periods was A. Maddison [1], who widely used the methods of quantitative analysis (quantification) as a tool for historical analysis
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