Innovation Economic Growth Research Articles

УМОВИ ТОРГІВЛІ ТА ІНДУСТРІАЛІЗАЦІЯ: РЕАЛІЇ В УКРАЇНІ

he paper explores the impact of terms of trade on the industrialization and economic growth in Ukraine due to significant vulnerability of national economy to foreign economic shocks, its openness and mainly commodity structure of exports. In this research we have chosen manufacturing value added as percent in GDP to identify periods of industrialization, as its growth corresponds to periods of accelerated industrial development and vice versa. Also we considered GDP per capita as indicator of national economy’s performance. The changes in terms of trade were investigated based on the analysis of terms of trade adjustments, which are determined by the ability to import goods and services minus exports at constant prices. As an empirical research tool vector autoregressive models have been chosen to explore the relationship between endogenous and exogenous variables in dynamics. Thus, the endogenous variables in the model are the annual growth rate of GDP per capita, manufacturing value added and terms of trade adjustments in 1991-2018. Therefore, the first-order vector autoregression model was constructed to examine this relationship. According to the results of research, acceleration of terms of trade adjustments growth rate (deterioration of terms of trade) in Ukraine leads to fluctuations in the manufacturing value added growth with an increase of almost 3% in the second period and further declining. It indicates an increase in industrial production in response to the deterioration of terms of trade in the short run and possible intensification of innovative economic growth triggers. Fluctuations in manufacturing value added account for from almost 7% to 14% in fluctuations of GDP per capita growth. In turn, fluctuations in terms of trade adjustments account for only from 3% to almost 5%. At the same time, fluctuations in manufacturing value added from 8% to 13% are explained by fluctuations in terms of trade adjustments.

Business Sector Innovation and Economic Growth a Comparative Analysis Between EU Countries

This paper examines the relationship between innovation carried out by the business sector and economic growth in the 28 member states of the European Union, divided into two groups (1 and 2) according to their innovation performance. We use fixed effects panel data methods to test the hypothesis that business sector innovation plays a relevant role in explaining the behaviour of real GDP per capita, estimating two growth regressions according to data availability (1990-2015 and 2008-2015; unrestricted/restricted sample). The results indicate that the role of business sector innovation in economic growth not only varies according to the sample of countries and the period under analysis, but also the proxy for innovation used. In group 1 (above average innovation performance) the innovation indicators statistically significant in explaining growth also present a positive sign (with a few exceptions). In group 2 (below average innovation performance) on the other hand, the statistically significant business sector innovation indicators present a negative sign. One possible justification for these signs are differences in absorptive capacity, so that the growth benefits of innovation activities depend on aspects such as human capital availability, accumulated knowledge, technological and financial support. Since group 1 includes countries with higher absorptive capacity, business sector innovation is effectively translated into faster economic growth. In group 2, innovation activities do not translate into productivity increases due to a lack of absorptive capacity. Additionally, resources used in innovation activities might compete with other activities more relevant in terms of the stage of the growth process these countries are in so that innovation saps growth.

Narratives of change: How social innovation initiatives construct societal transformation

Alongside current policy discourses on the transformative potentials of social innovation, social innovation initiatives also construct their own accounts of how society can be transformed and by whom. Building on state-of-the-art futures studies and narrative research and their linkages, this article unfolds these narratives of change (NoC) by social innovation initiatives. A tripartite framework is used to analyse and discuss the content, construction and role of the NoC of four initiatives: Ashoka, the Global Ecovillage Network, RIPESS and Shareable. The analysis shows that all NoC suggest alternative economic arrangements that challenge the current neoliberal, capitalist system, including the dominant policy narrative of (social) innovation for economic growth. It further highlights the pivotal role of NoC in the construction of individual and social identities and the efforts dedicated to the development and communication of collectively shared worldviews. Differences in NoC are identified regarding the more deliberative or rather hierarchical ways of narrative construction. Concluding reflections highlight how NoC reveal the failings of current systems and suggest alternatives, that their construction mirrors and thereby tests the model of change advocated by social innovation initiatives and that NoC may lure actors into enrolment by offering opportunities to engage in meaning-making.

China's Digitalization and its Implications for China-South Korea Economic Cooperation

As the second largest economy in the world, China is experiencing a new wave of digitalization with new drivers. This paper identifies the complementarities in digitalization between China and South Korea in order to provide policy suggestions on how the two countries should cooperate in the digitalization journey to achieve quality-oriented and innovative economic growth. To that end, a digitalization matrix is developed as a framework to capture the elements of digitalization and analyze the gap of digitalization between China and South Korea by measuring the matrix. The analysis can show the strength and weakeness of digitalization between the two countries in absolute gap and exibit the relative gap among all elements across the matrix. Based on the result of the analysis, this paper investigates whether and to what extent the two countries can tap into the complementary assets. As a conclusion, this paper suggests four ways for China-South Korea economic cooperation in digitalization: enhancing the policy coordination in digitalization, sparking up multi-level collaboration on smart city initiatives, screening areas with high complementarity to boost industrial digitalization, and sharing the experience of promoting digital economy governance.

Effect of Terms of Trade on Economic Growth of China

This study investigates the effect of terms of trade (TOT) on the economic growth of China over the period 1980–2013. Autoregressive distributed lag (ARDL) model proposed by Pesaran, Shin, and Smith (2001, Journal of Applied Econometrics, 16(3), pp. 289–326) is applied for examining the short-run and long-run associations. The causality analysis between variables is analyzed by using Granger causality test and variance decomposition test. The ARDL model reveals that TOT significantly and adversely affect economic growth in the short run as well as in the long run. The results also imply positive short-run and long-run effect of labor and capital on the economic growth of China. The Granger causality results reveal significant bidirectional causal relationship between economic growth and capital, and between capital and labor force. The results show unidirectional causality from TOT to labor force. The variance decomposition results show that most of the innovation in economic growth is explained by its own innovation, while other variables have very small contributions to its innovations. The notable findings of the study suggest that TOT deterioration is relatively important for enhancing the economic growth of China.

Institutional Support of Innovation Development of Economy «Resources of the Region» on the example of Krasnoyarsk Region

In the article, on the example of Krasnoyarsk region, it is shown that the key problem of the economy «resource» Russian regions - the dominant role of a relatively small number of large enterprises with low add provided value. At the same time, the modern institutional environment for business in Russia and of a region, is clearly unfriendly and costly. It is shown that using of methodology of institutional design through the development and implementation of a strategy for institutional development to address the challenges of providing high quality, innovative economic growth in the region «resource type» on the example of Krasnoyarsk region.

ИНСТИТУЦИОНАЛЬНЫЕ ИЗМЕНЕНИЯ, ОБЕСПЕЧИВАЮЩИЕ ИННОВАЦИОННОЕ РАЗВИТИЕ ЭКОНОМИКИ «РЕСУРСНОГО РЕГИОНА» (НА ПРИМЕРЕ КРАСНОЯРСКОГО КРАЯ)

<p>Economy of the so-called «resource» regions of Russia is characterized by the predominant role of a relatively small number of large enterprises with low added value. At the same time, the modern institutional environment for entrepreneurs in Russia is clearly unfriendly and costly. Sustainable growth of regional or national economy, if measured quantitatively, cannot be achieved without the institutional changes of innovative character. Innovative economic growth in a resource region, such as the Krasnoyarsk region, should be based on the methodology of institutional design with the help of institutional development strategy. It is possible to create an institutional environment that will not aggravate the contradictions between the interests of its subjects but will balance these interests. The contradictions between formal and informal norms should be neutralized by increasing the efficiency of enforcement mechanisms; positive institutional change should be accelerated by developing minimal-consumption goods, stimulating producers to innovative activity by maintaining competitive opportunities, encouraging regulative organs to ensure effective production supervision.</p>

Arts Entrepreneurship and Cultural Policy Innovation in Beijing

This article analyzes three cultural entities in Beijing, China: National Centre for the Performing Arts, 798 Arts District, and Today Art Museum using two lenses: Kingdon's Multiple Streams Framework (MS) and concepts of arts entrepreneurship, in order to examine these entities' development and current condition. The performing arts center has become a source of national pride, the arts district now is one of the world's largest, and the museum paved the way for a new kind of “private” institution in China. Concepts including policy streams, policy windows, and policy entrepreneurs ground the analysis. In order to enrich the perspective, we explore theories in the growing field of arts entrepreneurship and their applicability to the changing economic environment of China. We point to the realities of policy formation as well as the innovative economic growth fostered through arts entrepreneurship in China, grounding the analysis in a positivist perspective due to the opacity of the process in that country. While Multiple Streams Framework is a powerful tool with which to understand and interpret policy formation, change, and adaptation, it is the arts entrepreneurship principles that provide important ways to look at creative commerce, both from the perepective of the individual and the organization. We find that, while each arts entity was formed under very different circumstances, they all now incorporate facets of arts entrepreneurship including brand building, market development, and audience growth. Frameworks and theories must be flexible and resilient in order to be adapted to more diverse contexts. By reframing cultural policy and arts entrepreneurship theory to incorporate culturally relevant data, they each can provide valuable tools for scholars, policymakers, and municipal leaders. This allows the understanding of key theoretical components to expand, reflecting political and social realities while ensuring the relevance and viability of these analytical tools in multi-cultural contexts.

Theoretical Approach of Science, Technology and Innovation for Economic Growth in Mozambique

This paper presentation reflects literature review and the theoretical approaches on the relevance of the interdependent dynamics of Science, Technology and Innovation (STI) and their relationship to economic growth. The paper will do a review on literature of case studies and will aim to understand how the STI indicators have been applied or not applied in Mozambique for framing policy on economic planning purpose. Evolutionary theories like those of Schumpeter and others have complex and dynamic approaches which are conceptually attractive. In this paper we examine their respective virtues and limitations, and their visibility when connected with practical policy-making. In this context, the paper aims to examine the relative strengths and weaknesses of science and technology in the economy of Mozambique and analyze the policies identified to support the development of science, technology and innovation. This theoretical approach will also reflect on the relevance of the interdependent policy issues relating to the dynamics of science, technology and innovation and their relationship to economic growth.

NEOLIBERAL LOGICS OF AUSTERITY POLICIES IN UKRAINE: THE RELATIONSHIP WITH INNOVATIVE GROWTH

Urgency of the research. In the vast majority of developed economies governments have toughened the fiscal consolidation. It is recognized as a tool for dealing with the debt crisis and implemented as austerity policies. Target setting. Austerity policies are constructively criticized by opponents for negative impact on the innovative economic growth: “the collapse of the economy into itself”, ignoring national conditions. Actual scientific researches and issues analysis. In Western science, an active discussion was launched on the adequacy of austerity policies. The polemic is being conducted among the Neoclassical supporters of austerity policies (A. Alesina, S. Ardagna, C. Reinhart, S. Rogoff, J.-K. Trichet) and their opponents-representatives of Keynesian views (P. Krugman, W. Streeck, D. Mertens, M. Blyth, S. Kozelman). Uninvestigated parts of general matters defining. In Ukraine, the government, with no nationwide “critique and debate”, has adopted neo-liberal rules of the game on tight fiscal consolidation, without fully taking into account national specifics and the effect of fiscal pressure of fiscal consolidation on discretionary spending. “Soft” social investments, that are future-oriented, turned out to be completely unprotected. Determining the priorities of government spending needs further research. The research objective. The objective of the article is a theoretical and political-economic analysis of the austerity policies in Ukraine and provision of practical proposals for the formation of institutional conditions that direct such policies to innovative growth. The statement of basic materials. The concept of expansionist austerity policies during the recession is not fulfilled: confidence is not restored, economic growth is not ensured. Currently, Ukraine remains with a budget for a declining economy, with insufficient resources to respond to major challenges. Reducing spending on innovative growth in a weak economy generates further weakness. Conclusions. The neoliberal logics of tight fiscal consolidation in Ukraine is not working. Ukraine needs to adopt fiscal rules that will ensure a balanced fiscal policy and promote innovative growth.

Innovation and Investment Safety as the Condition for Neo-Industrial Development

1. Introduction 1.1 Introduce the Problem In active scholarly disputes concerning the reasons and consequences of global financial and economic crisis of 2008-2009 the predominant part of researches is focused on its crucial nature. Its scale was stipulated by accumulation of critical changes at global and national levels, industrial and social spheres, developed and developing economies. At global level the crisis became a definite boundary for realization of illiberality of world economy based on subordination of real sector to speculative and financial one (Tatarkin et al., 2014). At national level it provided a search for a new model of growth that in different countries takes place when there is joint realization of significance of real economy in general and industry in particular. In such circumstances the matter of scientific and practical interest is the concept of new industrialization being in its essence high-technology, knowledge-intensive and digital revolution that puts emphasis on increase of competitiveness of economic system and provision of innovative quality of economic growth. The multiplicate system problematics of new industrialization of Russia has been discussed and is being under all-round discussion of chiefly Russian economic school (Amosov (2014), Gubanov (2014), Neshitoi (2014), Alekseev (2014). Sukharev (2014), etc.). At the same time various aspects of the concept one can find nowadays in foreign economic science as well (Vithayasrichareon et al. (2012), Popovic (2012), Wrobel (2013), Wen (2015), Zaini et al. (2014), Kwak et al. (2015)). Neo-industrial formula of Russia's development goes hand in hand with growth of innovative accumulation and extended reproduction on the innovational basis. Against such a background the main condition for country's transition to new concept of economic development is the creation of economic and institutional premises and achievement of rational (uttermost) criteria of and investment activities' safety. 1.2 Explore Importance of the Problem Theoretical importance of the research lies in explanation of and investment as the sub-system of national economic safety. Its achievement is the obligatory condition and background for realization of investment policy aimed at forcing of neo-industrial modernization of national public production, provision of innovative quality of economic growth and achievement of high level of population's living. It should be noted that at the present time the category of innovation and investment safety is being quite undeveloped and controversial--there is no coherent idea about its criteria and indicators, dialectic interaction between and investment and innovative economic growth and neo-industrial development, ways of determination of risk-contributing factors that forms threats in the named sphere. The specified theoretical limitations are being constraining factor for development of effective national investment policy as the basis for transition of Russia to innovative path of development. 1.3 Background/Literature Review Today closer attention of both--Russian and foreign scientists--is paid to the matters linked to the choice of a new model of global economic and national development. The main evidences of this are so-called reshoring strategy (Cameron, 2014) implying of productions back home, the phenomenon of return of industry to economy, Industry 4.0 concept in Germany and heated discussion on conditions and methods of neo-industrialization in Russia. Against such background for Russia and the world economy at the present time there are new global and macroeconomic challenges, primarily--in the sphere of realization of safe investment policy for the purpose of neo-industrial development of economy. In this connection in the system of economic the research of and investment as its key sub-system becomes feasible. …

The Productivity Growth–Technology–Entrepreneurship Nexus: Implications for Pakistan

Labor productivity growth has received scant attention in Pakistan even though it is the foundation of rising living standards and a country’s ability to compete in the world market. Productivity rises when producers invest and introduce new technologies to reduce production costs and improve the quality and range of goods produced. Competition among producers entails a constant search for areas of improvement, tapping new technologies and finding innovative ways to produce and deliver the output to consumers. This is entrepreneurship. The first part of the paper discusses productivity growth and its drivers. The second part explains the critical importance of technological progress and innovation in economic growth and the catch-up process. Entrepreneurship and how it might be stimulated in Pakistan is discussed next. The paper concludes with a few ideas on how science and technology might be promoted in Pakistan.

РАЗВЕРТЫВАНИЕ СТРАТЕГИИ ИННОВАЦИОННОГО ЭКОНОМИЧЕСКОГО РОСТА В УСЛОВИЯХ НОВОГО ТЕХНИЧЕСКОГО УКЛАДА

РАЗВЕРТЫВАНИЕ СТРАТЕГИИ ИННОВАЦИОННОГО ЭКОНОМИЧЕСКОГО РОСТА В УСЛОВИЯХ НОВОГО ТЕХНИЧЕСКОГО УКЛАДА

Факторы инновационного экономического роста России

Факторы инновационного экономического роста России

Инновационное управление в системе модернизации российской экономики

Based on analysis of the modern economy, the article discovers key external challenges that make innovative development of the Russian economy the key element for modernization of the country. It defines systemic institutional factors that safeguard the innovative economic growth and specifically form a model to innovatively manage the growth of modernization subjects' competitiveness. The author formulates the notion of innovative/ entrepreneurial management and key values for an innovative organization, such as: strategy guaranteeing a temporary monopolistic rent; strategic control; organizational capital and the integrated structure of its components, sustainable financing sources.

The Change in post 1980 Economic Development and Innovation Studies towards Evolutionary Economics

The role of innovation in economic growth is perceived differently by the different schools of thought. The neoclassical theories emphasise equilibrium in the economy and cannot explain the role of innovation, because the effect of innovation is actually a disturbance of equilibrium. Schumpeter (1961) has shown that growth and development can only take place if the economy is constantly disturbed to an out-of-equilibrium phase. In some of the later neoclassical theories, innovation was considered as a factor that causes growth, but was treated as an exogenous factor. The “new growth theories” were developed later, including innovation as an endogenous factor, but these theories were still based on the equilibrium principle. In the Schumpeterian and neoSchumpeterian theories, innovation is treated as endogenous to the economy. Schumpeter had not been acknowledged as a mainstream economist during the time that he developed and first published his theory. It was not until the 1980s that economists started paying attention to his works and to the importance of innovation in development. The aim of this article is to determine how the studies since 1980 have changed regarding their foundation in the different schools of thought. A methodological and theoretical review is conducted of post 1980 empirical studies that determined the relationship between innovation and economic development. It was found that many empirical studies still make use of neoclassical equilibrium models and that the studies that consider the complexity of the innovation system are not yet sufficiently developed to explain the relationship between innovation and economic development.

Russia’s Financial System: Stimulation of Innovative Growth, Increasing Role in Global Financial Markets

This paper offers proposals on stimulation of Russia's innovative economic growth through share ownership diversification, improving corporate governance practice and capital structure transformation. The paper also contains concepts on how to strengthen Russia’s role in global financial markets through development of financial, monetary, investment, innovation policy and transformation of financial market model.

Evaluation of Changes in Effluent Quality from Industrial Complexes on the Korean Nationwide Scale Using a Self-Organizing Map

One of the major issues related to the environment in the 21st century is sustainable development. The innovative economic growth policy has supported relatively successful economic development, but poor environmental conservation efforts, have consequently resulted in serious water quality pollution issues. Hence, assessments of water quality and health are fundamental processes towards conserving and restoring aquatic ecosystems. In this study, we characterized spatial and temporal changes in water quality (specifically physico-chemical variables plus priority and non-priority pollutants) of discharges from industrial complexes on a national scale in Korea. The data were provided by the Water Quality Monitoring Program operated by the Ministry of Environment, Korea and were measured from 1989 to 2008 on a monthly basis at 61 effluent monitoring sites located at industrial complexes. Analysis of monthly and annual changes in water quality, using the seasonal Mann-Kendall test, indicated an improvement in water quality, which was inferred from a continuous increase in dissolved oxygen and decrease in other water quality factors. A Self-Organizing Map, which is an unsupervised artificial neural network, also indicated an improvement of effluent water quality, by showing spatial and temporal differences in the effluent water quality as well as in the occurrence of priority pollutants. Finally, our results suggested that continued long-term monitoring is necessary to establish plans and policies for wastewater management and health assessment.

A Commentary on Entrepreneurship and Economic Development (Ed. Wim Naudé)

Interest in the study of entrepreneurship has flourished among scholars in recent years. This research has brought to light, among other things, the important role of entrepreneurship and innovation in economic growth. We know that innovative entrepreneurs - those who bring new products and processes to the market - are disproportionately responsible for the breakthrough or ‘disruptive’ innovations that change our daily lives and allow for the rapid improvement in standards of living that developed countries have experienced over the past century, and also disproportionately responsible for job growth in industrialized economies. While we have learned much about the effects of entrepreneurship, many of the mechanisms of change remain open for research.The role of entrepreneurship in the economic growth of developing countries is certainly even more complex. Studies of this topic often look to history for answers, following the development path of industrialized or growing nations to find the ‘secret sauce’ for their success. Just as innovative entrepreneurial activity is vital to the ongoing growth of developed countries, innovation and entrepreneurship are essential components to a developing economy’s long-term growth. This is the topic of the recent UNU-WIDER book Entrepreneurship and Economic Development, edited by Wim Naude. This article provides some perspective on this contribution.

Effect of Finance on Growth Through More Efficient Utilization of Technological Innovations

This paper models the effects of financial development on economic growth through better or more efficient utilization of technological innovations. The model is based on the endogenous growth theory of Aghion and Howitt and its derivatives, especially the growth model of Aghion, Howitt and Mayer-Foulkes, which covers the effect of financial development on convergence. The main contribution of this paper is to model the innovation channel of finance explicitly. The paper focuses particularly on the interaction term between the measure of own innovation and financial development. As countries approach the technological frontier, own innovation becomes more important to sustain a high growth rate. An adequate level of financial development is needed to realize the full potential of own innovation for economic growth. The data covers the period 1960–2007 for anvanced economies, emerging markets and some other countries for which data are available. In estimation of the model, different regression specifications for the data panel are applied. The robustness of the results is also tested in several ways. The results show a significant and positive sign for the interaction term between the measure of own innovation and financial development in the most important configurations. This suggests that the innovation channel of finance is likely to have a positive role to play in economic growth.