Academic journal article Asian Social Science

Features of State Regulation of the Economy in Terms of Its Transition to Innovative Way of Development

Academic journal article Asian Social Science

Features of State Regulation of the Economy in Terms of Its Transition to Innovative Way of Development

Article excerpt

Abstract

The article discusses the main directions of state regulation of the economy and one of the most important its components - innovative activity. We justify the need for state regulation, analysis of models and mechanisms for the construction of national innovation policy, facilities and areas of scientific and technological development of the country. We give guidelines to improve the mechanisms of state regulation of innovative activity, tools for implementation and evaluation of its effectiveness.

Keywords: government regulation of the economy, innovation, innovative policy, innovative processes

1. Introduction

Increase state intervention in the economy is objectively necessary for the modern Russian realities, in an environment where more and more the first signs of recession are clearly seen. The main argument in favor of the state regulation is the need to bring in the economic development the elements of order, as the classic market regulation under these conditions does not work anymore.

If any areas are not to be regulated by the state, they will be regulated by element, criminals, or oligarchy. This was vividly demonstrated in the Russian economy in the 90-ies of the last century. Now, however, market regulation can be discussed only abstracting from the existing practice, because such regulation is almost impossible to be imagined in a pure form. Market is unable to balance and counterpoise the total demand and supply. It is inclined to monopolize of the spheres of social production. Therefore, the society insures itself by opposing the monopolization of markets by state regulation of their manifestations.

In the process of economic evolution the scientific and technological progress and innovation development increasingly acts as one of the main areas of government regulation. This aspect in the Russian economic has been given and continues to be focused very little attention.

The share of knowledge, materialized in the form of equipment and technology in the advanced countries with developed market economies (USA, Germany, Japan, etc.) is up to 70% of GDP growth. Innovation sphere determines the ability of the state to provide high competitiveness of the economy and use systemic factors of its growth. Therefore, many countries for the past few decades have been taking a wide range of measures of governmental regulation of the innovation vector of development.

In the Russian Federation, the innovative component for a long time was not included in the strategic plans and priorities of the state, and the problem of the formation of the innovation system was not sufficiently solved. This determined the need to rethink the value of innovation and innovative development of the country's economy.

From the history of world civilization we can distinguish the existence of 5 technological structures, with the last 3 of them fall at the XX century (Kirova IV, 2014). In the Russian Federation technological stmcture evolved in such a way, that the periods of formation, expansion and recession were extended in time and the only justification for such situation where the experienced wars, each of which threw the economy back. Currently, the level of basic indicators in the Russian Federation, characterizing the structures, is 2-5 times lower than in the developed countries. And after the 90s the development of all technological structures - the third, fourth and fifth went down dramatically. Therefore, the main task of the state innovation policy now is to ensure the implementation of Russia's national interests through economic growth, national security, the nation's health, internal stability and reduction of social tension, foreign authority and influence (Afonasova, 2008).

The not entirely consistent reforms in the economy and society conducted in Russia since the beginning of the 90s of the twentieth century to the present time were mainly focused on the change of ownership, on the formation of market relations, which led to the weakening of the role of the state. …

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