Економіка, управління та адміністрування (Jul 2023)
State-institutional support of innovative model of economy
Abstract
The formation and implementation of the innovative potential of a person are important factors in the economic development of society. However, there are economic and moral limits that limit this process. Economic boundaries are determined by the level of development of society. This means that available resources, funding and infrastructure may be limited in less developed economies. For example, low-income countries may have limited opportunities to finance research and development of new technologies. Thus, the level of economic development of society determines the scale and speed of formation of innovative potential. Moral boundaries are related to basic social institutions. These institutions include legislation, the legal system, cultural norms and values. They determine the framework of behavior of business entities and the level of ethics of innovative processes. For example, the observance of intellectual property, ethical standards of human research or the application of new technologies in accordance with social values – all these are moral boundaries that affect the formation and implementation of innovative potential. State instruments for supporting innovative activity include measures such as the provision of state guarantees and the application of state protectionism policies aimed at the development, production and use of high-tech products. State instruments for supporting innovative activity include measures such as the provision of state guarantees and the application of state protectionism policies aimed at the development, production and use of high-tech products. In particular, the government can create special funds to stimulate investments, attract public capital to the implementation of innovative infrastructure and projects in partnership with the private sector. Innovations are an important factor in the cyclical development of the economy, as they create new technologies and devices. Therefore, in the field of innovative economy, the state plays an important role in the implementation of countercyclical regulation.
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