Economic Innovation Research Articles

MAPPING THE LINKS BETWEEN RESOURCE EFFICIENCY AND THE INNOVATIVE CAPACITY OF NATIONAL ECONOMIES

The article examines studying the relationship between the level of innovation in different countries and the efficiency of their resource use, in order to better understand the potential impact of increased adoption of new technologies on the responsible use of resources in the future. Two country’s samples were created for the study: the first includes 36 world economies, with calculations of energy and labour resource use efficiency, taking into account the size of the economy and the level of innovation achieved; the second sample includes data on the material footprint of 121 countries, along with levels of innovation and economic development. The empirical confirmation of the hypothesis that there is a relationship between the level of economic innovation achieved and the efficiency of resource use is a key finding. Furthermore, the results of the correlation analysis indicate a direct and close relationship between a country’s economic innovativeness and its consumption volume of natural resources. This relationship can be described by a linear function. The analysis also confirms that as the population’s welfare and economic innovativeness grow, the state’s material footprint increases. The study is of theoretical and practical importance, encouraging the improvement of tools to ensure innovative development based on responsible production and consumption of resources. This approach aims to achieve better results at the same cost. Identifying the necessary factors related to innovative activity and efficient resource use by enterprises, as well as establishing functional dependencies between these variables, represent prospective areas for further research. In addition, a detailed examination of the experiences of Russian companies and their implications regional differentiation in terms of innovation and resource efficiency is a logical next step.

ӨҢІРДЕГІ ИННОВАЦИЯЛЫҚ ДАМУ ЖӘНЕ ОНЫҢ КӘСІПКЕРЛІККЕ ӘСЕРІ

The experience of industrialized countries has proved that in the context of global competition in the world market, the one who has a developed infrastructure for creating and implementing innovations, who owns the most effective mechanism of innovation activity, will certainly win. The effective functioning of the country's innovative economy should be based on innovative infrastructure. The process of reforming the economy requires changes in the socio-economic life of the country and the expansion of innovative activities. The possession of natural resources does not guarantee the country's competitiveness on the world stage. It is necessary to form an innovative space in the economic system in a close relationship between intellectual potential and innovative activities, as the main factor in ensuring sustainable economic development and improving the standard of living of the country's population. The article analyzed the current state and use of innovations by business entities in the region, problems and prospects for the further development of this area

On the Separation of Scientific Activity and the State-owned Corporate Form of Science Management in Contemporary Russia. Part 1

The article presents the details of ideas and proposals announced by the author in 2021 within the framework of the round table of the “Science Management: Theory and Practice” journal (on the topic “Science in an Innovative Economy”). The proposed measures are considered as increasingly relevant in the face of the long-term confrontation with the ‘collective West’ which is striving for scientific and technological isolation of contemporary Russia. The first part of the article gives an overview of the developments and trends observed both among Russian researchers, including scholars in science studies, and in the field of state regulation of scientific, academic and technological activities, as well as provides a critical analysis of organizational and legal aspects and practices of interaction between models of a ‘qualified customer’ and a ‘qualified contractor’ of scientific research and development. According to the results of the analysis, the author justifies the conclusion about the need for separation of scientific activities in present-day Russia. Separation is understood as the process of concentration and rational differentiation of the proper ‘scientific’ and then scientific and technological activities from the related quasi-scientific fields. The appropriate legal and organizational measures serve as the separator (separation mechanism) in this context. It is proposed to develop and implement them in the near future with the direct participation of Russian researchers endowed with state responsibility and the appropriate powers and authority.

What drives environmental sustainability? The role of renewable energy, green innovation, and political stability in OECD economies

ABSTRACT One possible way to achieve environmental sustainability is by addressing the issue of rising CO2 emissions, which significantly cause climate change by intensifying the greenhouse gas effect. The Organization for Economic Cooperation and Development (OECD), which substantially contributes to global CO2 emissions, necessitates a paradigm shift towards using clean energy sources and promoting green innovations to ensure environmental sustainability. Thus, this study aims to inspect the role of renewable energy use, green technology innovation, political stability, and fiscal decentralization in attaining environmental sustainability by limiting CO2 emissions for seven OECD economies from 2000 to 2019. This study has employed the ‘Cross-Sectional Augmented Autoregressive Distributed Lag and Augmented Mean Group Estimator’ for robust empirical analysis. The results indicate that renewable energy use, political stability, and fiscal decentralization can mitigate CO2 emissions and ensure environmental sustainability in OECD economies. In contrast, green technology innovation exhibits an insignificant effect on CO2 emissions. Furthermore, the moderation effects of fiscal decentralization and political stability exhibit a negative relationship with CO2 emissions. Notably, this study advises OECD nations to encourage regional cooperation to ensure political stability and devolution of fiscal powers to promote green innovation and renewable energy use to achieve sustainable goals.

Education Policy of 3rd Generation Universities

Background: One of the tasks of the education policy of any state is the spread of its influence in the international arena. Today, universities are striving to take and strengthen their positions in the world ranking systems, demonstrating the status and reputation of universities in the global market of educational services. This ranking serves as a guideline for future students and their parents when choosing a place to receive a prestigious education and in the formation of individual trajectories of vocational training. Approach: There are several approaches in the world to determining the criteria for assessing a state's education policy. But despite the differences, they all document the growing role of modern universities in the development of society. In many respects, it is important both in terms of guaranteeing the sustainability of society and in terms of ensuring a breakthrough direction in its development. In contrast to recent times, this role has grown significantly. Due to the fairly conservative and limited social system in its function, such universities become a central link in the development of innovative economies and social spheres - the science that produces the socio-economic development of a particular region, Education, innovation centers, national or as well as global processes. Results: It covers all areas of the university, from cooperation with students to financial and scientific activities. A prime example of such an association is the International Strategy Advisory Service (ISAS 2.0) of the International Association of Universities or Universities (IAU). Conclusions: Around the world, states are trying to stimulate and support these processes. In many countries, this is facilitated by opposition from high-tech companies to the reduction of the final amount of independent basic and applied research, in favor of collaborating with universities on basic research projects. As part of its innovative activities, University 3.0 is involved in supporting business activities, analysis and consultation by experts from local governments and local authorities, opening facilities, and infrastructure for citizens, monitoring regional development, services to citizens are provided for lifelong learning and support student entrepreneurship projects that take into account the interests of the community.

Forecasting of technology innovation and economic growth in Indonesia

This article explored the scenarios of future technology innovation and economic growth. The feedback economics' perspective was applied in forecasting future technology innovation and economic growth. The system dynamics modelling of economic growth by incorporating technology innovation revealed that: i. General Purpose Technologies (GPTs) investment should be linked with industrial policy as a leverage point; ii. The post-COVID-19 industrial policy should diffuse GPTs for inclusive growth and sustainable development, it is different with the Indonesian pre-COVID-19's industrial policy, specifically before the 1997 economic crisis; iii. Rethinking the Indonesian industrial policy is to rejuvenate the existing industrial-based GPTs' complex, and the inter-ministerial policy coordination is a challenge to implement the industrial-based GPTs policy instrument. Putting the GPTs' innovation into practice by using industrial policy for future economic growth sustainability is the unique insight on reindustrialization. The scientific contributions of this study were: i. on theoretical basis, the framework and model enriched the feedback economics' view of Cavana et al. and; ii. on innovation economics' studies, the framework and model support the concepts of Lundvall. Finally, future work from this study is designing different feedback structure that could generate different results.

Supporting circular economy innovation: An analysis of a circular economy intervention in Wales.

The Intergovernmental Panel on Climate Change (IPCC) recently advised that “climate change is a grave and mounting threat to our wellbeing and a healthy planet” (2023, p.6). This threat underlines the importance of developing businesses innovation capabilities and implementing Circular Economy (CE) principles. Organisations that have developed innovation capabilities are most likely to implement CE principles within their organisations. However, the UK has suffered a ‘long tail of productivity’ largely due to the UK’s relatively low levels of innovation across the firm population. In Wales, the location of this study, output per hour worked was almost 16% below the UK average in 2021, suggesting that the levels of innovation capability might hinder CE implementation. Therefore, evidence on programmes that support organisations to develop their innovation capabilities and their CE understanding should be of interest to policymakers, academics, and practitioners. This paper presents data collected from a university designed CE innovation programme, the Cardiff Circular Economy Network, and suggests that the novel approach adopted enhanced the innovation capabilities and CE knowledge of participants.

Modular organization of a decision support system for managing an innovative economy

The paper examines the problems of managing state development programs during the transformation of the economy into an innovative one. A transition from program-target management to program-design management is proposed. This transition is justified by applying the modern theory of economic systems to the entire system of space for the formation and implementation of government programs. Based on this transition, four spirals of development become the basic components of management: objects, processes, environments, and projects. This allows you to formalize management goals and criteria and move on to the construction/development of a decision support system. The work provides the main approach to constructing a platform implementation of management of state development programs.

Opening speech at the meeting of the scientific-sectoral section “Sociological Sciences” of the 6th Professorial Forum “ Science and Education as the Basis for the Development of Russia. Personnel for an Innovative Economy”

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NEW DEVELOPMENT OPPORTUNITIES IN THE SYRDARYA REGION: INNOVATION AND INVESTMENT PROJECTS

The article pays special attention to the formation of a new economic system in the Republic of Kazakhstan, the change in the quality of life of the population with the strengthening of modern public institutions and their main positions. Achieving qualitatively new successes in the regional economy, increasing the efficiency of the extractive sector; ensuring economic diversification; developing advanced domestic modern infrastructure in the regional and global economy; The socio-economic modernization of special economic zones in the direction of modern education and professional retraining, the use of new technologies, ideas and views, the development of an innovative economy is considered on the example of the Kyzylorda region. In order to attract high-quality investments into the economy of the Kyzylorda region, indicators of effective work on expanding international cooperation in the agro-industrial complex, light industry, production of building materials, mining, transport and logistics, healthcare, education, tourism, oil refining and other industries are provided. Differentiated investment attractiveness of the region, actions to modernize the potential of the region, new prospects and development priorities.

Rural Entrepreneurship and Innovation in BRICS Economies: Secondary Evidence from Rural Areas in South Africa

It has been propagated by scholars and practitioners that entrepreneurship and innovation are potent tools that can be harnessed to transform rural areas, grow rural economies, create jobs, and enhance the prospects of attaining sustainable development goals (SDGs). Subsequently, these disciplines have garnered attention from researchers for virtually a century. Nonetheless, these researchers often focused on entrepreneurship and innovation activities in urban areas, thereby neglecting entrepreneurship and innovation activities in rural areas. Thus, there is a paucity of literature on rural entrepreneurship and innovation in the BRICS economies. Within the context of the agency theory and the Triple Helix Model of industrial policy, this study systematically reviews the literature on rural entrepreneurship and innovation in the Republic of South Africa. The study revealed that rural firms are risk-averse, which challenges the doctrine of rural transformation through rural entrepreneurship and innovation. Moreover, the ability to engage in entrepreneurship and innovation by rural firms is highly dependent on the availability of support from the government and actor networks. Subsequently, rural firms fail when support has been phased out. Thus, the government and actor networks should do things differently, with an emphasis on teaching rural firms to be independent and sustainable entrepreneurs and innovators.

Legal regulation of cryptocurrency and cryptocurrency operations in the European Union

The article “Legal Regulation of Cryptocurrency and Cryptocurrency Operations in the European Union” offers a comprehensive examination of the evolving legal landscape surrounding cryptocurrencies within the European Union (EU). It begins by defining cryptocurrencies, highlighting their unique characteristics such as decentralization, volatility, and potential for misuse. These features pose significant regulatory challenges, as traditional legal frameworks may not be fully equipped to address them.
 The article delves into the EU’s response to these challenges. It outlines the various legislative measures that have been implemented to regulate cryptocurrencies and related operations. These measures aim to strike a balance between fostering innovation in the digital economy and ensuring consumer protection and financial stability. The article discusses the implications of these regulations, noting that while they have brought some clarity and security to the sector, they also risk stifling innovation if not carefully calibrated.
 The article explores the ongoing debates within the EU regarding the appropriate regulatory approach to cryptocurrencies. It underscores the need for a nuanced understanding of the technology and its potential impacts. The article argues that regulation should not merely react to the challenges posed by cryptocurrencies but should also anticipate future developments to remain effective and relevant.
 The article concludes by emphasizing the importance of dialogue and collaboration among regulators, industry stakeholders, and the public in shaping the regulatory approach to cryptocurrencies. It suggests that such engagement can help ensure that regulations are not only responsive to current issues but also adaptable to future changes.
 The article provides a thorough and insightful analysis of the legal regulation of cryptocurrency and cryptocurrency operations in the European Union. It underscores the complexity of the issue and the need for a dynamic and forward-looking regulatory approach. The article serves as a valuable resource for anyone interested in understanding the intricacies of cryptocurrency regulation in the EU.

The Challenge of Foreign Investment in Mexico: Between Theory and Public Opinion. An Analysis of Perception and Challenges Regarding Fdi As A Source of Innovation

Purpose: This research explores the public opinion of online news consumers, expressed through Facebook comments, regarding Foreign Direct Investment (FDI) as a source of innovation in Mexico. The study seeks to comprehend the challenges faced by FDI in the country and their potential impact on the public perception of FDI as a driver of innovation in the Mexican economy. Theoretical Framework: This study examines previous research that explores FDI as a source of innovation in host economies, aiming to provide the context necessary for understanding how the public perceives the role of foreign resources in fostering innovation in Mexico. Design/Methodology/Approach: The methodology employed in this research was the phenomenological design of a qualitative approach to analyze interactions and comments on Facebook from users who consume online news related to FDI in Mexico. The aim was to identify patterns and trends in public opinion regarding the perception of FDI as a source of innovation. Findings: The theoretical perspective suggests that FDI can foster innovation in host countries; however, an analysis of public perception revealed challenges and controversies associated with FDI in the Mexican economy. Research, Practical & Social Implications: The comprehension of public opinion regarding FDI as a source of innovation allows the establishment of suitable strategies for the integration of Mexican companies into the international market. Originality/Value: This paper offers a perspective to understand how public opinion of FDI can influence its role as a catalyst for innovation in the Mexican economy.

Sustainable innovations, knowledge and the role of proximity: A systematic literature review

AbstractInnovations can substantially contribute to the transformation toward sustainability if they induce a positive social and/or environmental impact. Such sustainable innovations differ considerably from conventional, purely economic innovations. The main difference stems from the different knowledge bases necessary for the development of these innovations. These knowledge bases are widely dispersed across different actors from business, academia, government, and civil society. Following the innovation system approach, we look at actor constellations, linkages between actors, and knowledge flows within networks that generate sustainable innovations. For this purpose, we conduct a systematic literature review, focusing on the concept of proximity and its five dimensions (geographical, cognitive, institutional, organizational, and social proximity). The results show that all proximity dimensions, as well as the interdependencies between them, are relevant for analyzing knowledge flows leading to sustainable innovations. The interplay of the different proximity dimensions can be described via two mechanisms, one being reinforcement and the other one being either substitution or overlap. We conclude that for the occurrence of radical, systemic innovations, which have the potential of altering the prevailing socio‐economic paradigm toward greater sustainability, a combination of low cognitive and low (micro‐) institutional proximity combined with high organizational, social, or geographical proximity, appears particularly conducive.

Reasoned Economic Innovations for General Equilibrium Competition

When some win, others lose, and this is a natural competitive process in an equilibrium economy. With objective competition of general equilibrium, maximum efficiency and optimal use and redistribution of resources are achieved. But some hidden external and internal monopolies interfere with such equilibrium in the microeconomic markets sectors, including entire regions and industries. Accordingly, equilibrium competition is disrupted, which requires adequate unexpected innovative protective mechanisms of the state and the international community. If government economic departments or corporate management watch all criminal activity of hidden monopolies with their hands folded in pockets, a temporary disruption of effective equilibrium competition could lead to protracted stagnation and “thrombotic shocks” in local and international markets. For an example of applying the above in practice, when predatory monopolies import agricultural products at artificially low dumping prices, which ruins even very successful local businessmen, it is necessary to establish import-substituting free zones with a reasonably calculated minimum tax to stimulate exports. In objects to recommend innovative economic (fiscal-managerial) mechanisms for maintaining effective equilibrium competition, in the article, using the methods of grouping and summarizing statistical data, a preliminary assessment of countries in need of international and government support was carried out and results were obtained to improve the proportions in the core of market competition and for ease the burden of reasoned free zonal taxation.

Jak chrześcijaństwo stworzyło cywilizację techniczną w „zaczarowanym [jeszcze] świecie”?

This text highlights the underestimated contribution of broadly understood Christianity to the development of technological civilization. This would not have been possible without an entirely new understanding of the concept of human freedom brought about by the Christian faith. This new understanding of freedom, completely different from the one in the ancient theocratic system, by recognizing the role of the human person, led to the liberation of creativity in the areas of economic initiative and technological ingenuity. In the modern era, economic freedom became a subject of moral reflection for the Church. This work provides numerous examples of technical and economic innovation carried out by believers and discusses the necessity of developing a moral science that is adequate to new challenges. The reference point for the presented considerations is Max Weber’s concept of the “disenchantment of the world” and its interpretation by Franz-Xavier Kaufmann.

NATIONAL IDENTITY AND INNOVATIVE DEVELOPMENT AS FACTORS OF ECONOMIC SECURITY OF THE COUNTRY

Purpose. Study of the impact of national identity and economic innovativeness as factors of the country’s national and international security on international economic relations; defining the main foundations of national identity, which should be taken into account when developing state policy and forming a national geostrategy, as well as clarifying the relationship between national interests and economic growth based on innovation. Methodology of research. The following methods of scientific analysis were used to implement the identified goals and tasks of the research: historical, systemic, structural-functional and value-normative. The historical method made it possible to trace the nature and peculiarities of the formation of the national idea, as well as to determine the prospects for its development in the period of global transformations. The system method made it possible to comprehensively examine the national identity, to identify its main elements and connections. The structural-functional method helped to reveal the role of the functional unity of society united by the worldview and value concepts of the national idea, as well as to characterize the importance of innovative activity and technological development of industrially developed countries. The value-normative method helped reveal the relationship between national values and their impact on economic security and the course of international economic relations. Findings. The impact of national identity and economic innovativeness on international economic relations is determined, their role in ensuring national security and the formation of state policy is established. The analysis of the impact of globalization processes on the nature and content of the country’s national interests is carried out, the role of the geopolitical factor in this context is determined, and the problem of forming a modern Ukrainian geostrategy in the context of the struggle for the realization of national interests and ensuring the country’s national security is considered. It is substantiated that in the modern world, innovations become a determining factor in the dynamic development, transformation and competitiveness of socio-economic systems in the global space. Originality. The influence of national identity and economic innovativeness as factors of the country’s economic security on international economic relations was investigated on an interdisciplinary basis at the intersection of such scientific disciplines as political science, economics, history, cultural studies and the theory of international relations; some aspects of Ukraine’s economic development strategy are defined, emphasizing the importance of international cooperation, integration processes, and national collective strength for solving future post-war challenges. Practical value. Theoretical provisions, conclusions and recommendations are important for the scientific justification of the optimal mechanism for the implementation of the national economic strategy, taking into account the national identity and economic innovativeness in modern social and political conditions, as well as the possibility of applied application of these results in the educational process. Key words: national identity, innovation, innovative activity, national idea, geopolitics, economic security, economic nationalism, international economic relations.

Der Beitrag ethischer Faktoren zur Erklärung der rückläufigen Innovationsdynamik

Abstract When analysing the declining innovation and growth dynamics of modern economies, cultural and ethical influencing factors can be identified alongside economic causes. In his theory on the innovative capacity of the market economy, Edmund Phelps emphasised the importance of non-monetary motives for entrepreneurial activity, which can also be substantiated by looking back at the history of the industrial revolution(s). From a current perspective, the introduction of shareholder value-oriented approaches to corporate management and the transition to financial market-based benchmarks at the end of the 20th century led to a radical change in the culture of motivation in the financial and real economy. As a result, the ability to innovate was impaired by reduced investment in research and development, which was exacerbated by the misallocation of capital in the financial sector.

Investigating technology development in the energy sector and its implications for Indonesia

Innovations for a low-carbon economy and carbon neutrality are the focal points of technology development in the energy sector. This paper aims to investigate the progress of technology and advancements in the energy sector and the implications for Indonesia via two routes, viz., renewable energy and energy efficiency. The methodology employed in this research is divided into two parts. Firstly, an extensive literature review was conducted to identify prevalent research trends within the energy sector. Second, a case study method was performed to gain a comprehensive understanding of energy transformation within the electricity and steel sectors. The study presents two key findings. First, the energy sector has experienced significant technological disruption, providing the opportunity for Indonesia to transition towards a low-carbon development. This includes smart grids, energy-intensive industries, electric vehicles, and storage (pumped storage and battery). Second, lessons from the steel industry show that the technology selection is sensitive to parent company, and this is not easily captured in literature studies. Indonesian has gained many benefits from the global technological disruption, but this is not sufficient without developing changes in support system and consumer behavior.

Forging Paths: A Systematic Review on the Interplay of Government Policies, Technological Advancements, and Business Growth through the Role of Economic Innovation.

Forging Paths: A Systematic Review on the Interplay of Government Policies, Technological Advancements, and Business Growth through the Role of Economic Innovation.