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Home / Issues / № 2, 2012

Economics

STATE POLICY IN SUPPORT OF INNOVATION IN THE CONTEXT OF ECONOMIC DEVELOPMENT
Petrukhina Е.V., Sibirskaya Е.V., Stroeva О.А.

The state of economy from the point of view of providing national security is characterized mainly by the economic development level, its dynamics, scientific and technical development level, structure and state of research and production potential. The main reason of supercritical state of national security in Russia was almost two fold production decrease in 90s, which together with two fold reduction of country's economic space as a result of USSR disintegration resulted in reduction of state profitable base more than four times. Only this year the GDP will have been reached the level achieved in 1990. At the same time the investments volume is two times less than the one before the reforms, actually all the time after the disintegration economy used the production potential created before. Depreciation and the mean age of fixed assets which increased twice for 15 years of reforms demonstrate this fact.

Low economic activity doesn't allow not only to maintain simple reproduction, defence and achieved level of well-being but to provide minimal level necessary for economic development of the territory and to keep the available infrastructure. This manifests in mass population outflow from the North and the Far East regions, catastrophes and accidents which happen very frequently in the basic industries -transport, energy, chemical industry. With such tendencies economic space cleared out by Russia will be inevitably filled with foreign capital. It is clearly seen from the lobbyists increasing pressure upon the authorities concerning foreign companies 'interests in transferring them the most valuable natural resources, growth of foreign control over country's information space, replacement of Russian airplanes for imported ones and so on.

There are threats of depletion and degradation of country's resources potential. The most dangerous is the problem of the most important development resource, that is, human capital. It is caused by a sharp decrease of living standards and curtailing of the most complex industries. A considerable decrease of life duration and tendency to the reduction of population, rapid growth of society's alcoholism and socially caused diseases, quality decrease of compulsory education and public health services make impossible the provision of the basic conditions for modern economic growth.

It is well-known from modern economic growth theory that country's specialization in raw materials and its integration to the world economy according to the scheme «raw materials export - import of manufactured and consumer goods» result in non-equivalent foreign exchange, chronic lag in economic development level and loss of possibilities and stable self-development. This happens from pricing peculiarities for manufactured production and the raw materials.

In the former case the major component is intellectual rent (which is formed due to temporal monopoly on scientific and technical innovations and is the financing source of further scientific and technical development and consequently economic growth. In the latter case the major factor is natural rent which is mainly spent on -manufactured production and can be used only partially for financing investment. Thus country's raw-materials specialization leads to natural rent in exchange for import of inflation and economic growth financing abroad due to non-equivalent economic exchange. The scope of such resources overflow may be large. For example the share of intellectual rent in the price of a new electronic engineering and its software may constitute a half.

Thus the reduction and devaluation of scientific and technical and intellectual potential under modern conditions of international competition mean the loss of basic inner source of economic growth and dooms the country to constant was away of the national wealth in non-equivalent foreign .exchange.

Reasonable macroeconomic policy oriented on creation of favourable conditions for economic growth must solve at least two fundamental problems. First, it must provide survival and development of industrial sphere including those segments which lack cash assets due to their outflow to the sphere of capital circulation. Second, it must result in elimination of barriers between manufacturing sphere and the sphere of capital circulation and inside them, restoration of integration necessary for effective economy functioning between them. If these problems are not solved, any reasonable methods both macroeconomic and industrial or structural policy will be ineffective.

Provision of economic growth in the transitional period of economy demands coordinated solution of formation problems of technological, institutional and organizational structures capable to combine all necessary elements in a general reproductive contour of new technological structure growth and to create conditions for modernization and effectiveness increase of economy as a whole. Favourable macroeconomic environment should be provided and adequate behavioural motives and organizational forms at the microlevel should be formed.

In the sphere there is a problem of production-technological system formation for a new technological structure and stimulation of its growth together with modernizing of contiguous industries. To solve this problem it is necessary to create competitive on the world market industrial-financial institutions, import of necessary technologies, stimulation of quick emanation of new technologies, a system for training of personnel of required qualification, protection of domestic production markets from foreign competition, insurance of favourable for new technological structure pricing proportions and other parameters of economic mechanism.

In the institutional sphere there is the problem of formation of economic mechanism to provide the redistribution of resources from obsolete and unpromising industries to production technological systems of new technological structures, concentration of resources in the points of its growth, modernization of economy, its effectiveness and competitiveness growth on the basis of innovations. Measures on enterprises privatization, financial and monetary policy, price and income policy, fiscal policy and trade policy should help solving these problems.

The same goals must determine the policy in the sphere of organization-production economy structure improvement. It is important to stimulate the forms of financial, industrial, trade, research and educational organizations integration that could develop steadily under conditions of tough international competition and provide the non-stop efficiency increase on a new production technologies application basis.

The macroeconomic policy should provide favourable conditions for the solution of the listed problems ensuring stability, good investment and innovation climate, maintaining national economy competitiveness and appropriate international monetary and financial policy. At the microlevel it is important to provide property rights accuracy and certainty, ensuring observance of the high management responsibility level, stimulating proper entrepreneurial motivation aimed at production efficiency increase, progressive innovations and modern management methods.

Proposals on the economic growth policy under conditions developed in the Russian economy are formulated proceeding from these obvious problems. This policy is divided into two constituents: creation of favourable general macro- and microeconomic conditions for the increase of industrial, investment and innovation activity and special measures for stimulation of progressive structural changes on the basis of the new technological way industries distribution, as well as progressive development of basic technologies of a new level.

As for macroeconomic conditions along with liquidity crisis and economy disintegration characterized above continuous depression and impossibility of transition to growth are the results of:

- prices disparity (price increase of raw materials and energy in contrast to finished goods prices). As a result, the greater part of manufacturing industry and agriculture are unprofitable or low profitable;

- prolonged rouble exchange rate (for the last three years the fall in exchange of rouble has lagged behind its inner devaluation more than six times), leading to noncompetitiveness of domestic finished goods and loss of both foreign and domestic markets;

- inaccessibility of credit resources necessary for production development;

- devaluation of enterprises funds as a result of high inflation and mass nonpayments;

- productive efficiency decrease as a result of sharp reduction in productive capacities load;

- the fiscal tax system based on high taxation of industrial sector;

- devaluation of population savings in the «Sberbank» and financial pyramids, that undermined public confidence to financial institutions. Creation of favorable conditions for production activity and investment activity rise should become the macroeconomic policy core.

Efficiency of special measures for economy structural reorganization decisively depends on chosen priorities accuracy. From the scientific and technical point of view, chosen priorities should correspond to the perspective tendencies of the new technological way formation and timely reserves creation necessary for the following structure formation. From the economic point of view the state support of activity at realization of priority trends should be characterized by two chief features:

1) to possess considerable external effect, improving the general economic environment and conditions of business activity development;

2) to activate the business activity growth in the wide complex of branches connected with priority industries - i.e. to possess multiplying effect, creating amplifying demand and business activity growth impulse.

All economic state policy should be oriented to realization of Russian economy competitive advantages. World experience of successful economical structural changes proves the support of those areas of national economy that can be the basis of economic growth on world market scale to be the key aspect of structural reorganization.

As a whole, realization of the Russian economy competitive advantages is impossible without diverse, constant and strong state support. It should be combined organically with market mechanisms not substituting and suppressing their activity, supporting competitive choice of the most effective production methods technologies.

World Rankings economic and innovative development suggests that Russia is on the majority of quality indicators has lagged behind other countries. As a result of this situation, Russia has low competitiveness.

Specificity of innovation - the uncertainty and pending the result; mismatch of social and individual effects, the asymmetry of information available to researchers, innovators, potential investors, consumers; high investment risks, specific requirements for staff development and quality management - enhances the value of innovation of state activity.

State policy in support of innovation orientated currently on the formation of infrastructure of institutions, must be supplemented by mechanisms and schemes of direct consumer incentives to the practical use of the innovation process. This may be a variety of schemes to provide soft loans, subsidies, compensation and subsidy of the consumer-innovators who are interested in improving the quality of services provided by the introduction of innovative products produced domestically.

However, major constraints innovative activity are not infrastructure, and economic in nature: it is the lack of funding, including from the state, the high costs of innovation. Financing the innovation process is among the most important to ensure procedures and instruments of modernization programs.

Long-term post-crisis innovative development of Russia will be defined as global trends and the influence of a whole set of factors. The most serious obstacles to the dynamic innovative development of Russian economy are: high inflation, corruption at all levels of government, tyranny of monopolies; worsening demographic situation and the decline in living standards; raw materials, technology companies depending on some sectors of Russian economy from the West.

The effective innovation development in Russia effectively in an environment of political stability, security of property rights in the means of production and intelligent products, developed market infrastructure.

At the present stage of development of world economy of prospect of development of this or that country will depend in many respects on the effective regional policy in all spheres of economic activities and, mainly, in the industry. Now on a share of innovative technologies in the developed countries it is necessary more than 70 % of a gain of gross national product. Intensity of innovative activity is in many respects reflected in level of economic development: in the conditions of an amplifying competition on the world scene win those countries and regions which provide favorable conditions for creation and introduction of innovations.

Transition to innovative model of development assumes a basic transformation of economy as a whole. In the past the epoch of unconditional domination of the large transnational companies which are guided, first of all, by volume capital investments and large-scale sale gradually leaves. It on change the high technology manufacture in which crucial importance plays ability of the company to constant updating of production at the expense of introduction of new technologies comes. In this new situation advantages of the enterprises of small and average business, first of all, their ability to fast introduction and change of technologies are shown. Transition to innovative model of development assumes considerable strengthening of a regional component in economy. It occurs because acceleration of innovative processes conducts to formation local territorial (regional, municipal) associations of the parties interested in innovative updating: scientists, business, local administration.

Besides, in innovative economy becomes economic policy especially valuable orientation to regional specialization as distribution of innovations between the firms making identical production, occurs many times faster, than in manufacture. Regional specificity assumes that the set of the local enterprises makes interconnected production within the limits of the given specialization. It considerably reduces expenses for development of new technologies by region firms, increases them economic benefit. Increase of a role of regions in innovative economy is connected with that circumstance that new knowledge and innovations are formed and take root faster and more successfully if they are aimed at the decision of local problems, in which local elite (administrative, enterprise, scientific is directly interested, etc.).

Logic continuation of process of comprehension by local elite of innovative problems of region is creation of an innovative infrastructure in its territory. The innovative centers, technoparks etc. At all distinctions existing between these institutes, their purpose one - consolidation of all acting participants of innovative economy of region for the sake of its increase coordination and, as consequence, efficiency.

According to this criterion regions can be three types:

- Regions with high concentration of innovative potential which has regional, inter-regional, federal, international value, with diversified economy and social sphere;

- Regions with average concentration of innovative potential which has mainly regional value, with two-three  industries;

- Regions with low concentration of innovative potential which more all the monobranch need innovative support from outside.

The innovative sphere is very important part of economy of region, it is directed on improvement of the various parties of economic life. Under the influence of innovative activity productive forces are modified, property relations, social and economic relations and managing forms change. The innovative sector as a component of economy of region is included into structure of object of scientific researches of regional economy. Thus the innovative sector as an object of research has certain specificity.

Priority in it there is a revealing, ordering, the forecast of factors, conditions and the tendencies forming innovative activity and influencing it. Innovative activity in region influences not only economy development, and also social, technological spheres and ecology. The innovative potential of region is considered as its capability to perform innovative activity. As criterion of innovative classification degree of concentration of innovative potential in region can be used.



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Bibliographic reference

Petrukhina Е.V., Sibirskaya Е.V., Stroeva О.А. STATE POLICY IN SUPPORT OF INNOVATION IN THE CONTEXT OF ECONOMIC DEVELOPMENT. International Journal Of Applied And Fundamental Research. – 2012. – № 2 –
URL: www.science-sd.com/451-24037 (28.03.2024).