INSTITUTIONAL DETERMINANTS OF INNOVATIVE DEVELOPMENT IN THE ECONOMY OF THE XXI CENTURY

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Published: Mar 16, 2020
https://doi.org/10.30525/2256-0742/2020-6-1-74-79

  Vasyl Lagutin

http://orcid.org/0000-0001-6626-4381

  Yuliya Yasko

http://orcid.org/0000-0002-8756-4612

Abstract

The article analyzed the problem of institutional determinants of innovative development in the 21st century, which is not yet sufficiently understood in a scientific sense. It is established that poor quality and inconsistency of institutions with macro– and microeconomic mechanisms exacerbates the problem of institutional determinants of providing innovative development in the economy of the 21st century. The subject of the research is the institutional determinants (a set of formal and informal rules and regulations, incentives and mechanisms) that determine the provision of innovative development. Economic development implies a progressive change in the institutional environment of the national innovation system. In the context of the above, it is proved that the peculiarities of the content of institutional determinants of innovative development in Ukraine are characterized by complication of interconnections and forms of manifestation, strengthening of transformational tendencies. It is determined that the effect of institutional determinants is manifested through the influence of three types of institutions: primary (basic) market institutions (protection of property rights and investments, observance of rights and obligations, fixed by the contract system, freedom competition); development institutes (regulatory environment, business climate, regulatory business opportunities, judicial independence); institutes of efficiency (developed human and social capital, effective legislative support, impartiality of judges, reliability of law enforcement agencies. The research methodology is based on the methods of a holistic systematic approach to institutional analysis, interconnections and the logic of institutional determinants of innovation development. It is crucial to build holistic logical constructs (based on a model of innovative behavior) that allow a full analysis of existing institutional relationships. The purpose of the research is to analyze the institutional determinants of innovation development in the economy of the 21st century, to evaluate possible directions for more effective innovation management. Regulation of scientific aspects of institutes and institutional determinants allowed to re-evaluate traditional problems of innovative development. The main conclusions of the research relate to the justification of the set of institutional determinants that ensure the effective interdependence of institutional and innovation dynamics. It is argued that the institutional determinants of innovative change cannot be considered outside the interconnections. It is determined that the most problematic issues of readiness for innovation are: a small proportion of firms that are able to perceive and implement innovative technologies, lack of sufficient resources, low interest in purchasing new technological products. It is established that the effective use of institutional determinants of innovative development is possible only on the basis of the formation and effective implementation of the mechanism for managing the institutional stimulation of relevant innovation changes. It has been shown that scientific clarification of institutional determinants is a prerequisite for a deeper analysis of the effective development of the national innovation system. Only effective institutions can provide the necessary opportunities for innovative development. In this context, there is a need to further expand the institutional research of the innovation system.

How to Cite

Lagutin, V., & Yasko, Y. (2020). INSTITUTIONAL DETERMINANTS OF INNOVATIVE DEVELOPMENT IN THE ECONOMY OF THE XXI CENTURY. Baltic Journal of Economic Studies, 6(1), 74-79. https://doi.org/10.30525/2256-0742/2020-6-1-74-79
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Keywords

institutes, institutional determinants, institutional stimulation, innovations, innovative system, innovative development

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Issue
Vol. 6 No. 1 (2020): Baltic Journal of Economic Studies