Abstract
The problem of the geopolitical stability of the country has always been the basis of sustainable economic development. CIS countries and their closest neighbours are the international centres where important transport and communication routes from Asia to Europe intersect. They have a wide range of various raw material reserves, which focuses the world community's attention and builds a separate vector of economic relations. The transformation processes that have taken place in recent years in countries have been due to scientific and technological progress, the intensity of global innovation, and globalization trends, which encourage the country to move to a new level of development. This article summarizes the arguments and counterarguments within the scientific discussion on the place and prospects of CIS countries' international economic position in the formation of the basis for innovative development. The main purpose of the study is to confirm the hypothesis about the functional links between foreign trade and investment activities of countries and the level of innovative development of the country according to the level of economical development. The study's methodological tools were the methods of correlation-regression analysis and simultaneous structural equations, which allow formalizing both explicit and latent relationships between the studied objects. The study period was chosen from 2011 to 2018 because of statistical data availability. In this regard, the array of input data is presented in the form of regressors which identify the level of innovation development countries and three dependent variables (regressands) which indicate the dynamics of foreign trade turnover, doing business and total internal economic conditions. Besides, the variables from each defined block participate as both dependent and independent variables during the construction of the structural model. The results of the study could be useful for The Innovation Agencies, which are established under the Ministry of Transport, Communications and High Technologies of these countries that assist local business entities in acquiring modern technologies and technological solutions
Highlights
The relationship between international economic activity and innovative development is the only vector in the mutual reinforcement of the economic stability of the country
Under the purpose of the article, which was to confirm the hypothesis of functional links between foreign trade and investment activities of countries and the level of innovative development of the country according to the level of economic development, a structural model and three multifactor regression models with random effects for panel data were built. of the CIS member states and the nearest neighbouring countries for the period 2011-2018
Three latent variables were formed, formed from a set of indicators selected by the method of main components, INNOV, which includes Innovation index, Information technology exports, High technology exports2; INTER, which includes Trade openness, Trade balance, External debt and GOV, which accumulates the following indicators – GDP per capita, Inflation, Real interest rate
Summary
The relationship between international economic activity and innovative development is the only vector in the mutual reinforcement of the economic stability of the country. Management of Innovation Development: Critical Evaluation of the International Economic Relations. I. A., Huseynov, T., Illiashenko, I., Petroke. Management of Innovation Development: Critical Evaluation of the International Economic Relations and industrial policy are fully conditioned by the willingness of society to engage in innovation processes. Despite the urgency of this issue, in many countries, there is a problem of establishing coherence between the level of innovation development and international economic activity. Effective management of both components is an essential prerequisite for the country's macroeconomic stability. It determines the country’s external position on readiness to engage in an international network of digital technologies
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