Academic journal article European Research Studies

Analysis of the Impact of Taxation of Business Entities on the Innovative Development of the Country

Academic journal article European Research Studies

Analysis of the Impact of Taxation of Business Entities on the Innovative Development of the Country

Article excerpt

JEL Classification : H25, O4

1. Introduction

To provide higher and steady rates of an economy growth it is necessary to carry out a transition to an innovative way of the development and to spur the creation of the hi-tech manufactures. At the same time it does not mean the automatic termination of the raw materials extraction. The stocks of some kinds of them make the state the leading one in the world.

At present time, innovations play a key role in ensuring the competitiveness of any economy, improving living standards, and contributing to the growth of people's welfare. An efficient state regulation and business activity support system is one of top priority factors to successful innovative development. The analysis conducted proved the relationship between the level of innovative development of countries, that is assessed by means of Global Innovation Index, and the rate of tax burden (in the context of direct and indirect taxes) on business entities and private persons (individuals), as well as the volume of direct investments and the production activity index.

Basing on such data, the ways to modernize fiscal policy (budget, leasing, amortization, investment, tax, customs, monetary, investment tax credit and tax credit application policy) by introducing changes into regulatory legal acts have been developed in order to improve the effectiveness and productivity of innovation-active economic entities.

Recently, the term "innovative development" begins to be applied in connection with a comprehension of the necessity to accelerate the introduction of a new knowledge in practice of an ability a person to live (Atkinson and Ezell, 2012). On the basis of the economic literature analysis, concerning an innovative development of the territories, it is possible to allocate some concepts considered in the works of the domestic and foreign authors. They are presented in the Table 1.

In Russia, the intensive research works in the field of formation and development of NIS began in second half of 90th last century (Amosenok and Bajanov, 2006). The main aim of an innovative system creation in Russia--is to maintain a sustainable development of a national economy and improvement of a population life quality on the basis of a mental potential use, generation, distribution and realization of a new knowledge.

The practice showed that the existing approaches in a maintenance the ability of the regions to live based on the acquisition of grants from the federal budget and the use of natural resources and available industrial potential cannot provide complex development of the territories and improvement of a population life quality any more (Basova and Nechaev, 2013). These problems can be solved by use of the innovative mechanisms for the territories development. Such an approach completely answers the modern dispositions, which show that from the last century in the Great Britain, Germany, the USA and other states the territorial authorities along with the federal government start to play an escalating role in development of the high technology industries, and also the innovative processes (Ananiashvili, 2010; Kondratiev, 1984, Kuznets, 1955).

In the world practice, there are examples of fast and successful innovative development of the local territories (Canto, Joiness and Laffer, 1983). Originally, in a role of territories of science high concentration and the high technology manufacture acted campuses (Oxford, Cambridge) and large industrial centers (Lyons). Then appeared technological areas (Karlsruhe) and research-production clusters among which it is possible to allocate such world famous places as "Silicon Valley", "Karolinsky triangle", "Highway 128". Today the most widespread organizational elements of the innovative infrastructure integrating a science and a manufacture in the world are scientific technological parks (Lenchuk and Vlaskin, 2014). …

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