17.11.2023

Test: Innovation factor in economic development. Globalization and development of the innovation system of the national economy Innovation as the main dynamic factor in economic development


The essence and goals of the innovative economy

Definition 1

Innovative economy or new economy (knowledge economy) are industries with a high share of intangible human capital (information and communication technologies, science, education and consulting services). This is the economy of new information technologies, high-quality processes that contribute to the leadership of the subject and the competitiveness of manufactured products.

An innovative economy effectively uses any innovation that is useful to society: patents; know-how; licenses; borrowed technologies or own development.

An innovative economy contains six main elements:

  1. the science;
  2. education;
  3. human capital (high quality of life and highly qualified specialists);
  4. favorable environment for the functioning of the innovation system, work and life of innovators;
  5. innovation system (legislative framework and material components: business incubators, clusters, technology parks, technopolises, venture business, etc.);
  6. an innovative industry that implements innovations.

The goal of innovative economics as a science is to study mutually beneficial relationships between people within the framework of their economic activities, which are associated with the creation and implementation of innovations.

Note 1

The ultimate goal of an innovative economy is the growth of the country's economic potential based on increasing the efficiency of using available resources through the creation and implementation of innovations. This is the creation of conditions for active economic growth, which will ensure the effective economic development of society, which as a result will contribute to the growth of the well-being of the country's population.

The basis for creating an innovative economy is considered to be regular updating of knowledge and an increase in the need for creativity and culture. This allows us to create innovative production technologies to maximally satisfy the growing needs of people, improve their quality of life and achieve personal and social well-being.

Conditions for the formation of an innovative economy

The development of an innovative economy makes it possible to carry out fundamental changes not only in the sphere of production, but also in the social environment, promotes humanization of spheres of people's lives, minimizes the negative impact on the environment and promotes the improvement of other sectors of the economy.

Choosing the optimal option for carrying out innovative transformations and their implementation requires studying the conditions for the formation of an innovative economy.

Note 2

A feature of innovative economic development is the increasing importance of new technologies and ways of disseminating knowledge. The main driving force of this process is the technology of knowledge generation, information analysis, its transfer and effective application.

The industrial sector of the economy is beginning to give way to the technological and communication components. There is a dynamic growth in the virtual sphere of the economy.

The main condition for the formation of an innovative economy is the consistent introduction of innovations, the presence of demand for them and high-tech products. Computerization plays a methodological role. New industries are emerging whose activities include the supply and processing of data (information and communications). Innovations are actively used in medicine, nuclear energy, and aerospace manufacturing.

The innovative economy is also formed by such technologies as: biotechnology; nanotechnology and new materials; military technologies; technologies for rational environmental management and energy saving.

The core of an innovative economy is people as carriers of ideas and knowledge. A person is perceived as valuable capital. The importance of consumers is also growing due to the development of Internet technologies. Companies are becoming customer-centric, striving to satisfy the differentiated individual needs of specific consumers. Personalization is actively used in working with clients. Consumers have the opportunity to become involved in the process of creating goods for themselves, forming product configurations and monitoring the entire production and marketing process.

Another condition for the development of an innovative economy is not so much the use of existing resources, but rather the provision of the possibility of their reproduction in the future and energy saving.

The growth of social spending is a condition that distinguishes the innovative economy of most countries. Spending on healthcare should be 5-10% of GDP (according to the requirements of the World Health Organization), on science - 1.5-3% of GDP, education - 5-7% of GDP. The indicators for social spending are especially high in developed countries, which indicates the active development of an innovative economy.

Factors of development and formation of an innovative economy

The formation of an innovative economy depends on a number of factors. They are divided into two groups. The first group is the factors that determine the existence of any economic system.

These factors include the following:

  • Natural and climatic (resource and raw material potential of the country);
  • Production and economic (means of production, forms of organization of production and labor, technology, level of education and qualifications of personnel);
  • Socio-cultural (priority life values, attitudes, cultural traditions that determine the spiritual and creative activity of a person).

Factors of the second group determine the qualitative characteristics of the economic system. They are the ones who contribute to the formation and effective functioning of an innovative economy.

These factors include:

  1. innovation-oriented human capital;
  2. venture investment;
  3. research potential;
  4. innovation transfer system;
  5. development of cooperation between science and business;
  6. formation of innovative entrepreneurship;
  7. innovation infrastructure;
  8. state policy on the formation of an innovative environment;
  9. international conditions.

The very development of innovation activity is a key factor in the country's economic growth. An innovative economy should be based on the intellectual and creative component of human capital, the use of high technologies, expanding the role of science and education in industry, and the use of innovations in all spheres of human life.

Issues of managing the innovative development of the economy are complex and controversial, as they affect the interaction of several parties - the state, venture capital firms, scientists and inventors, as well as universities. Bringing the knowledge economy to the forefront as a key driving force of modern society requires the creation of a holistic, complete and at the same time flexible and developing strategic system for the country's innovative development and mechanisms for the commercialization of new technologies.
In Russia there is an urgent need to increase the level of development of the market for innovations and corporate science, what is called R&D. Taking into account the different ratios of various kinds of indicators in each aspect of the formation of macro-innovation strategies, it is necessary in each specific situation to move aspects when choosing certain strategies. Implementation of strategies will require the creation of a system of supporting measures. As you can see, a lot of analytical work is required here, and serious analytics requires adequate knowledge.
Most industrialized countries today pin their hopes for long-term sustainable economic growth on the transition to innovative path of development, characterized by wider use in industry and the national economy as a whole of the latest achievements of science and technology - information technologies, biotechnologies, new materials, resource- and environmental-saving technologies. Therefore, increasing the innovative susceptibility of enterprises and the economy as a whole is one of the main tasks of a modern industrialized state.
Due to the limited resources available to society, each achieved level of technology development is characterized by its own production possibilities curve. Under the condition of efficient production, any attempt to satisfy one social need leads to a decrease in opportunities to satisfy another need. It is necessary to sacrifice one thing for the sake of another; each point on this curve corresponds to a certain possible ratio in the level of satisfaction of existing social needs with the fullest use of all resources and scientific and technical achievements available to society. Any point on the coordinate plane of the curve indicates insufficient production efficiency. Exit to the upper region is impossible without additional resources or new, more advanced technologies. Is it still possible to go beyond the production possibilities curve and how? Obviously, this will require either finding new resources or increasing the efficiency of those resources that are currently involved in production.
The first path seems quite problematic today. Wars for the redivision of the world, I hope, will never happen again. The times of the Great Geographical Discoveries, alas, are long over - there are almost no blank spots left on the map of the planet. The chances of discovering new large mineral deposits are also not very high - almost everything that is possible has already been discovered, although, of course, there are reserves for increasing the efficiency of using deposits. But this, in turn, requires considerable additional investment. We can only hope for the second path - the path of intensive technological development, which humanity has been moving forward in the last three centuries. Starting from the second half of the 18th century. There is a clear relationship between the state of the economy and the emergence of new industrial technologies.
According to many scientists, including N.D. Kondratyeva, D.S. Lvova, S.Yu. Glazyev, who deal with the problems of correlating the change in the technological structure and the transformation of the structure, any change in the parameters of the technological structure leads to certain changes in economic indicators, which together transform the entire structure of the industrial sector of the economy.
As an economic category, a technological structure is a set of technologies that are used at a certain level of production development and at a certain stage of economic development. Changes in these structures reflect the patterns of cyclical economic development.
In the works of S.Yu. Glazyev and D.S. Lvov’s technological structure is presented in the form of “consistent replacement of large complexes of technologically related industries.” The period of intensive development of a technological structure is about 40 - 60 years, the entire life cycle covers a century, and the speed of change of the structure depends on scientific and technological progress. To date, there are many works in which cyclicality is considered as a universal law of economic and social development. As part of the macroeconomic structure, the structure of the industrial sector of the economy also develops under the influence of cyclical fluctuations. In the works of S. Yu. Glazyev, A. Toynbee, D. Taylor, Y. Yakovets, A. Bogdanov, the main factor in economic development and technological renewal of the industrial sector is wave-like fluctuations, in the form of long waves or technological patterns.
The theory of long waves, created by the Soviet economist N.D. Kondratiev, was interpreted by various economists in cost, labor, general social and innovative-technological aspects. The latter approach is considered the most appropriate for studying structural transformations at the present stage of economic development, since it allows us to discern both internal and external factors of change in the structure of industry under the determining influence of the innovation-technological factor within the framework of cyclical-dynamic processes in the economy of the industrial sector.
The date of occurrence of the cycle is most often associated with the growth of economic activity, economic recovery, which are associated with the development of new technologies and the emergence of new industries in the structure. For some economists, the origin of cycles is associated with the effect of their compression. For example, N.D. Kondratiev and U.U. Rostow, the duration of the first cycle is 55 - 60 years, and the second is less than 45 - 48 years. In the theory of cyclical crises of capitalism, K. Marx noted the 7–11-year cycles of Juglar. V.L. Baburin, for example, assumes that with the increase in scientific and technical progress, the process of wave compression will intensify, and they will fit within a 40-year period. Differences in the assessment of cycle lengths among authors are most often associated with the indicators used for analysis, as well as the countries from which the calculations were made (Table 1).
Table 1
Time parameters of cyclical fluctuations of the economy (in the form of a graph,
ups and downs will be visible)


Cycles

Kondratyev N.D.

Rostow W.W.

Mironenko

Being a transformative process in its content, scientific and technological progress, as the main factor in changing the technological structure, contributes to the emergence of crisis phenomena under certain economic and technological conditions. The emergence of a crisis causes not only the withering away of old industries and types of production, but also the formation of new ones, which act as carriers of scientific and technological progress.
Scientific and technological progress can be considered a factor in transforming the structure of the economy, including the structure of industry and the configuration of the technological structure. Kondratiev considered scientific and technological progress not an external, but an internal element of the cycle. That is, the change in the cycle is determined not by the discoveries themselves, but by their demand, and it occurs at the moment when technologies become obsolete and investments in them become unprofitable.
Another famous researcher A.A. Bogdanov’s basis for the change of economic cycles is crisis, which is considered as a factor in the disruption of continuity and causing the transition of the system to a new state or its withering away. According to his theory, at the sites of rupture of two systems, a boundary layer is formed, which subsequently, in the process of diffusion, captures adjacent layers.
Based on the fact that the main factor causing the emergence of a new technological order is scientific and technological progress, which is inextricably linked with such a category as innovation, we will consider the latter as the starting point for the formation of a new technological order.
Emerging in space, an innovative wave transforms the structure of the industrial sector through changes in the technological and industrial components. Thus, under the influence of the innovation component, either a rise or a decline in production occurs in the structure of the industrial sector of the economy.
The curves of technological structures intersect at a certain point, which is associated with the smoothness of the process of transition from the old structure to the new, and the boundaries of the structures are unclear. This confirms the statement of S.Yu. Glazyev that “in a certain time period, the simultaneous existence of several technological structures is possible.” This is confirmed by the current situation, when within the framework of the functioning of the fifth, not yet extinct, order, the emergence of a new sixth order takes place.
The currently existing technological structure began to take shape into an integral reproductive system in the 80s. XX century The upward wave of the fifth Kondratieff cycle ended in 2005 and today the world economy is in a depression phase, which is expected to end in 2017. The basis of this technological structure is formed by: software, computer technology and information processing technologies, microelectronics, production of automation and communications equipment. According to the forecasts of some scientists, in the second decade of the 21st century. developed countries will move to the formation of the sixth technological order. By this time, a reproductive system will have been formed for a new technological structure, the formation of which is currently taking place.
According to experts, the formation of a new technological structure will lead the economy to even greater intellectualization of production, the transition to a continuous innovation process in most industries, as well as to a continuous process of education. “The final process will be the transition from a “consumer society” to an “intellectual society”, in which the requirements for quality of life and the comfort of the living environment will become of paramount importance.”
Progress in information and financial technologies, telecommunications systems will entail the expansion of economic globalization processes and will give impetus to the formation of a single world market for goods, capital, and labor. These patterns are manifested in the economic development of advanced countries, which shape the development trajectory of the world economy. By shaping the directions of development of economic and technological processes, they play the role of leaders of global economic development, taking advantage of all the advantages that arise. Countries lagging behind in development will be forced to copy the achievements of world leaders or take advantage of the results they have achieved, while giving away their natural resources at low prices. It should be noted that such an exchange is unequal; advanced countries realize their technological superiority, forcing developing countries to cooperate according to the rules of international economic cooperation that are beneficial for developed countries.
Within each technological structure, changes in political regimes and certain political reforms took place, which directly changed the structure of economies and, accordingly, the industrial sector of the economy. From the analysis of economic and technological development it is clear that the technological lag of Russian industry from global trends has been developing since the end of the 18th century. Despite the fact that at each stage of technological development the state implements measures to stimulate industrial sectors, there is no significant growth in the corresponding technologies. Objectively, this is due to the low density of demographic potential, strong differentiation of economic space, frequent political and military upheavals and a low share of their own innovative potential.
As follows from the results of available assessments, at this stage of economic and technological development, the fifth technological structure predominates, which has reached the maturity phase in the supporting industries while the core lags behind. The core industries of the fifth technical specification include the industries of microelectronics, optoelectronics, precision and electronic instrumentation, radio engineering, aircraft engineering, and communications systems. Academician Fedoseev wrote: “The gap from the world level in these technologies is very difficult to overcome, even with impressive investments.”
The existing gaps in the domestic industrial sector are compensated by the acquisition of imported technologies and equipment. This is evidenced by statistical data, according to which the fleet of personal computers and the volume of software technologies are growing at an annual rate of about 20 - 30%. These indicators indicate that currently the expansion of the fifth technological structure in the structure of the industrial sector of the Russian economy “is of a catch-up imitation nature.” This fact is confirmed by the dynamics of the spread of various components of this structure - the closer the technology is to the sphere of final consumption, the higher the rate of its spread. The accelerated expansion of the main industries of the fifth structure in domestic industry occurs through the use of imported technologies, which leads to the impossibility of effective development of key technologies at the core of this structure.
The existing technological gap forces the economy to make unequal exchanges with countries that are leaders of the emerging technological order. G. Fetisov’s statement is correct: “The main reason for the underdevelopment of the high-tech sector in Russia was the creation of many technological monopolies that arose due to the privatization of individual links in the “technological chains” for the production of finished products, especially enterprises that were under the jurisdiction of different ministries during the Soviet era.” That is, instead of inter-industry complexes and clusters, separate enterprises with interrupted technological connections arose in the industrial sector.
The complexity of this situation lies in the fact that there is a certain continuity between the fifth and sixth technological structures. And the technological lag in the development of supporting industries of the fifth structure will slow down the spread of the new sixth.
The fifth way is based on the use of microelectronics, and the sixth on the use of nanotechnology. And it is precisely at the phase of replacement of technological structures that it is important to advance the development of key industries at the core of the new structure. This will make it possible in the future to receive intellectual rent and thereby finance the expanded reproduction of technologies of the new way. That is, the timely identification and development of the basic industries of the new structure provides the opportunity for accelerated development for developing countries in the new economic cycle, due to the rapid formation of technological complexes of the core of the new structure and the modernization of its supporting industries.
At the same time, there is a risk associated with the uncertainty of the future technological trajectory, which complicates long-term forecasting and increases investment risks. Therefore, it is important to correctly determine the priority areas of the new technological structure.
According to the forecasts of domestic and foreign experts, the key factors in the development of a new technological core are nanotechnologies, cellular technologies and genetic engineering methods, which are based on the use of atomic force microscopes and corresponding metrological systems. Accordingly, the core of the future technological structure will be nanoelectronics, nanomaterials and nanostructured coatings, optical nanomaterials, nanobiotechnologies, and nanosystem technology.
Industries capable of producing the latest technologies will be the electronics and nuclear industries, the information and communications sector, aircraft manufacturing and the rocket and space industry, cellular medicine, and the chemical and metallurgical complex.
Despite the fact that the costs of developing new technologies are gradually increasing in the domestic economy, the share of the sixth structure in the modern economy remains insignificant. According to some forecasts, a qualitative leap will occur in 2015–2020. after the completion of structural adjustment, when the scale of the relevant technologies becomes significant and the economic environment is ready for their widespread use.
Currently, the problem of determining the priorities of scientific, technical and innovation policy worries not only the largest and most industrialized countries of the world (such as Russia, Great Britain, the USA, Japan, China), but also those states that, due to limited resource capabilities, have left to the forefront only in certain areas of technological progress (this is, in particular, Israel, Finland, Taiwan, South Africa). A significant increase in interest in the problem of priorities in recent years has also been associated with the transition of humanity into the new millennium. This stimulated the efforts of the state and the private sector to comprehend the path traveled and search for a development strategy for the future.
The pace of innovative development depends both on the efficiency of using scientific and technical resources and on the quality of the innovation environment. Currently, increasing the efficiency of R&D is carried out in the following main directions: increasing the efficiency of corporate and government R&D; strengthening cooperation between business and universities; improving the quality of public administration. Dominant in the 80-90s. an innovative model focused on bringing a new product to market as quickly as possible (Time- to- MarketGeneration), replaced by the "R&D productivity" model (R&D Productivity Generation), aimed at creating more innovations with less investment than competitors. Financial control and financial management, new management methods using information technology (IT) will, according to a number of estimates, almost double the return on investment in R&D.
In the context of globalization, governments are moving away from the practice of protectionism and attempts to protect national industries from liberalization processes; Methods such as targeted support for national sectors and firms are becoming a thing of the past. Instead, the priority is to create general conditions for the development of entrepreneurship and innovation, an environment that stimulates innovation and risk, and helps attract foreign capital to the innovation sphere. The most important areas of government influence on the innovation environment are supporting cooperation at all levels, improving the system of intellectual property protection, assistance in business restructuring, and antitrust regulation. In the new innovative economy, the state, responding to the demands of global business, begins to “make sure” that no privileged entities, including the state itself, can regulate the business environment. The development of an innovation environment contributes to the emergence of incentives for the business sector to develop innovations on their own. While the impact of “compensatory” measures can be quantified, it is still difficult to quantify the impact of the state on the innovation environment. Particular importance is attached to the formation of an innovative environment in Western Europe.
"Cluster" strategy. In the 90s A number of European countries have transformed programs to enhance the mobility of scientific personnel and subsidize R&D into comprehensive programs to stimulate cooperation between research centers, universities, enterprise groups and companies. In the innovation policy of Western European countries, incentives are beginning to occupy a central place. clusters. If in the 70-80s. stimulating innovation was primarily associated with stimulating high technologies as such, now this approach is gradually being replaced by cluster strategies aimed at creating specialized knowledge networks.
Innovation clusters in contrast to those developed in the 70-80s. entrepreneurial networks depend on global markets, they emphasize the active use of knowledge and high share of new innovative companies. It should be noted that at present it is difficult to talk about cluster strategy as a single concept. Governments understand and interpret the very concept of “clusters” differently. In general, there are three broad definitions of clusters:

  • regionally limited forms of economic activity within related sectors, usually tied to research institutions;
  • vertical production chains and networks formed around parent companies (IKEA network);
  • industries with a high level of aggregation or a combination of sectors (agricultural cluster);
  • large cities are research and business centers that are multiclusters.

In contrast to policies focused on individual sectors, a cluster strategy provides for the development of relationships between different sectors. The cluster approach is most clearly manifested in new initiatives to support small firms.
Innovative development represents successive periods of various innovations, a complex of created and implemented innovations, the accumulation of intellectual capital, the involvement of scientists in this activity - human capital and innovative organizations, the activities of which are impossible without investment capital. The effectiveness of innovation activity is strongly related to innovative development and the life cycle of innovation, in which there are stages of the emergence of innovation, early innovative development, late innovative development, maturity and crisis management, decline (attenuation) of innovation and the emergence of a new wave.
History shows that the introduction of new industrial technologies has always had a positive impact on economic growth and the standard of living of the population, which already at a new stage of development created conditions for the development and implementation of other new innovations. This fact seems to explain why most developing countries are unable to rise high enough in their economic development: there is no industrial base, no institutional and industrial environment, therefore no necessary qualifications of the workforce and inventors, no centers of innovation, no good education, since it is inaccessible, as a result of which the process of transformation of society as a whole is weak. According to M. Castells, there is historical evidence indicating that in general, “the closer the relationship between the centers of innovation, production and use of new technologies, the faster the transformation of societies and the greater the positive feedback between social conditions for further innovation.” G. Kleiner calls the knowledge economy “a state of the economy of a given country in which: a) knowledge becomes a full-fledged commodity; b) any new product carries unique knowledge; c) knowledge becomes one of the main factors of production.”
The term has become widely used innovation and terminological phrase innovative economy, which are also related to the knowledge economy. The field of economic science that studies the processes occurring in the sphere of information reproduction refers to information economy, but this area also intersects with the knowledge economy, since the rapid development of new information and communication technologies will continue to change the nature of the acquisition and dissemination of knowledge. In addition, information is a kind of raw material for human mental activity, which generates knowledge.
It is becoming clear that in today's global economy, countries can only become rich as a result of a combination entrepreneurship And effective use of knowledge. Disparities are observed not only between countries, but also within a country between different states, as happens in the USA and other countries. The business environment either encourages entrepreneurship or does not support it, so a dynamic business environment has a huge impact on the success or failure of entrepreneurship (Silicon Valley or Alabama in the USA, for example). Entrepreneurial resource is usually considered as the ability to effectively organize the interaction of individual economic resources of labor, land, capital, knowledge for the implementation of economic activities. At the present stage of technology development entrepreneur- This is rather an enterprising person who is capable of both developing the idea of ​​technological innovation and implementing it in a newly organized enterprise for this purpose. There are many such examples in the information economy in the US Silicon Valley, when students actively engaged in research work leave the university with their own businesses. These are people who create new efficient industries and destroy old ineffective ones. From the point of view of J. Schumpeter, who created the theory of creative destruction, innovative activity is the engine of economic development. The entire history of technological development confirms this theory. However, it should be emphasized that national entrepreneurship is developing incrementally on the foundation of old entrepreneurship, its culture and its infrastructure, which is confirmed by the research of M. Castells.

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Belyakova Galina Yakovlevna, Doctor of Economics, Professor of the Department of Economics and Business Process Management, Siberian Federal University, Krasnoyarsk, Russia

Chairan Yulia Alexandrovna, postgraduate student, Siberian State Aerospace University named after Academician M.F. Reshetnyova, Krasnoyarsk, Russia

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Sources:

1. Belyakova G.Ya. System of indicators for forecasting regional clusters [Electronic resource] / G.Ya. Belyakova, G.I. Krasnov // Modern problems of science and education, 2013. – No. 4.
2. Belyakova G.Ya. Conception of social and economic systems modernization: essence and basic models / L.R. Batukova, G.Ya. Belyakova // Creative Economy, 2011. – No. 10.
3. Indicators of innovation activity: 2012: Collection of articles. – M.: National Research University “Higher School of Economics”, 2012. – 472 p.
4. Pilot innovative territorial clusters in the Russian Federation / Ed. L.M. Gokhberg, A.E. Shadrina. – M.: National Research University “Higher School of Economics”, 2013.
5. Strategy for innovative development of the Russian Federation for the period until 2020: Order of the Government of the Russian Federation of December 8, 2011 No. 2227-r / Legal server “Consultant Plus” [Electronic resource]. – Access mode: www.consultant.ru.
6. Todosiychuk A. Science, education and innovation - the main factors of economic growth and social progress // Problems of theory and practice of management: international journal: official publication of the International Research Institute of Management Problems. – M.: International Media Group, 2010. – No. 2.

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It is necessary to distinguish between the terms “innovation” and “innovation”. Innovation is a broader concept than innovation.

Innovation is an evolving, complex process of creating, disseminating and using a new idea that helps improve the efficiency of an enterprise. Moreover, innovation is not just an object introduced into production, but an object that has been successfully introduced and brings profit as a result of scientific research or a discovery made, which is qualitatively different from its previous analogue.

Scientific and technical innovation must be considered as a process of transforming scientific knowledge into a scientific and technical idea and then into the production of products to satisfy the needs of the user. In this context, two approaches to scientific and technological innovation can be distinguished.

The first approach mainly reflects the product orientation of the innovation. Innovation is defined as the process of transformation for the sake of producing finished products. This direction is spreading at a time when the position of the consumer in relation to the manufacturer is quite weak. However, products themselves are not the final goal, but only a means of satisfying needs.

Therefore, according to the second approach, the process of scientific and technical innovation is considered as the transfer of scientific or technical knowledge directly to the sphere of satisfying consumer needs. In this case, the product turns into a carrier of technology, and the form it takes is determined after linking the technology and the need being satisfied.

Thus, innovation, firstly, must have a market structure to satisfy consumer needs.

Secondly, any innovation is always considered as a complex process, involving changes of both a scientific and technical, and economic, social and structural nature.

Thirdly, in innovation the emphasis is on the rapid implementation of an innovation into practical use.

Fourthly, innovations must provide economic, social, technical or environmental benefits.

The innovation process is the process of transforming scientific knowledge into innovation, which can be represented as a sequential chain of events during which innovation matures from an idea to a specific product, technology or service and spreads through practical use. The innovation process is aimed at creating the required markets for products, technologies or services and is carried out in close unity with the environment: its direction, pace, goals depend on the socio-economic environment in which it operates and develops. Therefore, only on the innovative path of development is economic growth possible.

Innovation activity is an activity aimed at using and commercializing the results of scientific research and development to expand and update the range and improve the quality of products, improve the technology of their manufacture, followed by implementation and effective sales in the domestic and foreign markets.

Innovation can be viewed as:

Process;

System;

Change;

Result.

Innovation has a clear focus on the final result of an applied nature; it should always be considered as a complex process that provides a certain technical and socio-economic effect.

Innovation in its development (life cycle) changes forms, moving from idea to implementation. The course of the innovation process, like any other, is determined by the complex interaction of many factors.

The use of one or another form of organization of innovation processes in business practice is determined by three factors:

1. state of the external environment (political and economic situation, type of market, nature of competition, practice of state-monopoly regulation, etc.);

2. the state of the internal environment of a given economic system (presence of a leader-entrepreneur and a support team, financial and material and technical resources, technologies used, size, existing organizational structure, internal culture of the organization, connections with the external environment, etc.);

3. the specifics of the innovation process itself as an object of management.

Innovation processes are considered as processes that permeate all scientific, technical, production, and marketing activities of manufacturers and, ultimately, focused on meeting market needs. The most important condition for the success of innovation is the presence of an innovator-enthusiast, captured by a new idea and ready to make every effort to bring it to life, and a leader-entrepreneur who found investments, organized production, promoted a new product to the market, took the main risk and implemented your commercial interest.

Innovations form the market for innovations, investments form the capital market, innovations form the market for competition of innovations. The innovation process ensures the implementation of scientific and technical results and intellectual potential to obtain new or improved products (services) and the maximum increase in added value.


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