Model of Innovation-Oriented State Economic Policy

Abstract

1. Introduction In the context of globalization and global competition not only between enterprises but also between states, the problem of ensuring innovation activity of domestic enterprises has become one of the burning issues under discussion. Current models of innovation-oriented state economic policy are simultaneously aimed at all enterprises; however, those instruments that are effective in relation to innovation-oriented enterprises, i.e. those that use innovations in their performance, turn out to be ineffective in relation to tradition-oriented enterprises, i.e. those enterprises that do not implement innovations into their activity (Havlicek et al 2013a; Havlicek et al 2013b). This is determined by the fact that methods of positive motivation and incentive successfully encourage innovation activity of innovation-oriented enterprises, but do not prevent further disregard to innovations by tradition-oriented enterprises and do not urge them to innovation activity. Therefore, it is necessary to work out a new model of innovation-oriented state economic policy which will be able to provide different measures for different groups of enterprises, and that serves as the purpose of the current research. 2. Subject The subject of the study is the model of innovation-oriented state economic policy. 3. Materials and methods Basket of tax measures aimed at encouragement of innovation activity is overall the same, although each country has its own peculiarities in development, methods, and conditions of using those leverages of influence. It is mostly determined by the modern state of the tax system, specific features of its development and regulation objectives of particular segments of the national innovation system. Anyway, the use of positive world experience by adopting corporate governance for example, providing that it is adapted to conditions of economic development in each country, will improve efficiency of state economic policy (Thalassinos et al 2012; Liapis et al 2013). All traditional tax concessions may be classified into three main groups: tax exemptions; tax abatements; tax credits. Principle of such classification lies in differences in methods of preferential treatment, results of their influence upon the change of some particular element of tax structure. It is also worth distinguishing between two tax groups of incentive character--for the venture (risk) capital and for residents of special economic zones (SEZ), as well as indirect incentives of innovation activity (VAT rate reduction for goods of innovative purposes or exemption from them and many others). The most impressive group is the first one--tax exemptions--majority of them are used for encouragement of innovation activity. Tax amnesty is the exemption of the person, having committed an administrative offence, from appropriate penal sanctions for these offences. As a rule, they are used in relation to payers having committed a tax offence by negligence and having voluntarily notified tax authorities of this offence. Tax concession in the form of total tax exemption for some categories of taxpayers (veterans, physically challenged people, etc.) is mainly used in relation to general property tax. Some categories of legal entities may be occasionally granted a remission of taxation as well. Refund of earlier paid taxes, for instance, advance prepayment that exceeds actual payment, or excessively paid taxes because of technical errors in calculation. As a tax concession, it supposes tax exemption from a part of prospective payment or tax payment by means of extra sum that was already paid up. Tax immunity represents a partial release from taxation. Tax holiday is a total taxpayer's release from taxation for a certain period of time. Decline in tax rate supposes partial or total tax exemption by the use of privileged tax rate. Creation of taxpayers' consolidated groups may also be considered as one of the types of tax concessions, because it is aimed at reduction of tax obligations within the group as a whole in comparison to summarized tax obligations charged at each payer individually. …