Transformational Factors of the Development and Implementation of the Innovation Capacity of Regional Economy

Abstract

The author focuses on the analysis of the conditions necessary for the development of innovation capacity of economy and distinguishes two groups of factors – transformational factors (presented by the human factor – A, technological factor – T, natural factor – Rn) and transactional factors (presented by the institutional factor – Ins, organizational factor – O, informational factor – Inf) – contributing to the development of innovation capacity. Human capital is the historical form of the human factor with intellectual capital as its integral component in the form of resources of intellectual activity which enhances the intellectual capacity and innovation capacity of the region. The technical factor which contributes to the development of the innovation capacity of economy implements the resource element of innovation capacity and results in knowledge-intensive industries where technological changes are defined by the sectoral and technological specialization and differ by their degree of knowledge intensity. The nature factor plays an important role in the development of the innovation capacity of economy, defines its technological base and has an impact on the scale of innovation activity. Natural recourses influence innovation capacity by means of the components of natural environment which are used as means of production or commodities. The role of the nature-resource factor in the structure of innovation capacity and innovation system increases with the abundance of extractive industries and decreases with the processing of raw materials. The human factor is considered to be the major one for the development of innovation capacity, it integrates the functions of technological, organizational and nature factors and contributes to the implementation of the innovation capacity of economy.