Macroeconomic signs of an innovative economy by the case of Great Britain

Abstract

By the case of the economic development of Great Britain, the hypothesis was verified that innovations at the macroeconomic level should accelerate economic growth and at the same time reduce development risks, stabilizing this growth, reducing its fluctuations under the influence of market factors. The economic development of Great Britain is investigated in 25 economic cycles for the period from 1830-2020. Economic development was investigated according to the parameters of economic growth and development risk in each of the considered cycles. Four types of economic development policy are theoretically described in terms of the dynamics of changes in growth and risk between the previous and subsequent cycles including progressive, regressive, aggressive and conservative. In relation to the identified periods of progressive development policy in Great Britain, the institutional innovations that led to this type of development were investigated. Among them was the great economic reform of the early Victorian era, the course of social or new liberalism and the popular budget before the First World War, the activities of the first Labor government immediately after this war, economic recovery after World War II in combination with the Marshall plan and nationalization, the era of the Conservatives and the politics of New Labor at the end of the 20th century. The study showed that the implementation of authentic national culture and institutions complementary to the existing authentic culture institutions of institutional innovations leads to a simultaneous decrease in the risk of development and acceleration of economic growth, which can be considered the most favorable policy of macroeconomic management of entrepreneurial activity in order to accelerate the application of technical and commercial innovations.