Bìznes Inform (Apr 2020)
An Inclusive Institutional Regime is a Prerequisite for an Innovative Type of Socio-Economic Development
Abstract
The significance of innovative development for the countries that lag behind developed countries is analyzed. Scholars around the world are actively discussing issues of inclusive economic development. The innovative type of socio-economic development becomes the basis that defines the country’s economic situation and prospects for its development in the future. Nowadays, innovations is an important factor in economic growth. Using the potential of innovation should ensure the development of economy and society. Stimulating innovation activity is one of the main development priorities of the State. Innovation development is of particular relevance for Ukraine, which suffered the greatest losses among post-socialist countries during market transformations. The country’s economy is characterized by the immaturity of market relations, low economic efficiency, lag in technical and technological development, investment and structural incompleteness of the market restructuring of the economy, is dominated by extractive institutions. The main factors that impede Ukraine’s transition to the innovative model of development are identified. The main reasons for the absence of rapid development of innovations in Ukraine include quite a high level of social tensions and low living standards of most of the population, political instability, existence of barriers in both the political and the legal planes. It is emphasized that the country’s transition to an innovative type of development is on the path of inclusive institutional transformation, which will allow to form free access to the country’s resources and the most effective means of their use. The need for transition of Ukrainian economy to a path of growth requires significant changes, creating favorable conditions for civilized promotion of new ideas to the market. Among all economic resources the creative human resources become the most important. The main source of innovation is human.
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