Экономические науки/15. Государственное регулирование экономики

 

Ткачёва Н.И., Черкова М.Ю.

Харьковский национальный экономический университет

INSTITUTIONALIZATION OF INNOVATIVE DEVELOPMENT IN A GLOBALIZING WORLD ECOMONIC

 

The main strategic task for Ukraine in the nearest future is the transition to an innovative model of development. The creation of a stable institutional environment, the formation of state and market institutions, and the effectiveness of their interactions are key aspects of the transition. Moreover, an integral system of economic relations that would lead to sustainable development of the whole country in a globalized international economic relations should be formed. However, there are a number of problems that are currently unsolvable for Ukrainian economy. Among them we can name disadvantages of the transition to an innovative model and the failure to create institutions that would be useful not only here and now, but also in future periods. This is determined by the failure of the state to execute its functions, which, in turn, causes a number of problems associated with the structural imbalance of innovative ties. All mentioned above contributed to the urgency of this issue today.

The objective of the article is to determine the theoretical foundations, as well as to analyze the characteristics of the institutional environment and the interaction of institutions that could lead to a certain crisis of economic relations in the globalization process.

To achieve the objective the following tasks were set: to reveal the essence of the concepts of institutionalization and creation of an effective institutional environment; to consider fundamental problems of the process of institutionalization in the existing conditions of Ukrainian economic environment; to analyze the impact of the distinguished problems on the impossibility of the country's transition to an innovative model of sustainable long-term development.

The object of the research is the process of institutionalization, which causes the transition to an innovative model of strategic development.

The subject is the institutional environment, which serves as the basis for the formation of effective institutions that interact with each other, creating an integrated system.

The study is made by the methods of theoretical generalization and comparative analysis to determine the theoretical foundations of the problem under view; the dialectical method, the methods of induction and deduction are used for solving the tasks set; the method of a comprehensive analysis is used to determine the underlying problems in the process of institutionalization of Ukrainian economy.

The urgency of the institutionalization process as an unconditional phenomenon of innovation development in the process of economic system creation has been considered by Y. Bajal, O. Batura, V. Geits, V. Tarasevich,  A. Chukhno, etc. [Bajan: 2004, Batura: 2009,Geits: 2004,Tarasevich: 2010,Chukhno: 2008].

Firstly, the term institutionalization was used in sociology, and only later it was borrowed by economics. Institutionalization is the replacement of the "spontaneous and experimental behavior to the behavior expected, predictable and adjustable" [1, p.5]. This results not only in the identification of the main rules and regulations, in fact, institutions, but also in their subsequent consolidation, streamlining and forming of an environment, which is called institutional. In its turn, the institutional environment is a combination of formal and informal institutions of the country under influence of which any activity, including economic one, is conducted. [1]

We need to point outthat a small legacy, which was left to Ukraine after the collapse of the Soviet Union should not only be maintained, but also be kept as the basis for the creation of an effective institutional environment, using modern management techniques, technology and investment.

First of all, the institutionalization of innovation process should create the conditions for protection, usage and re-creation of the innovative potential of Ukraine. In this context, it is possible to say that the important chain of links "science-technology-production" is not only destroyed, but is not renewed again in the country, which is a characteristic feature of the present situation in Ukraine [2,    p. 32]. In our country we can observe only a few, small links of the chain, the quantity of which is not sufficient to move to an innovative model of development. Ukraine is in losing position comparing with the countries of the world that have managed not only to recreate such process, but also to adjust it to their own economic system, interacting, both within the country and abroad.

In Ukraine, one can hardly observe pulses to enhance the process of institutionalization, as well as to raise capital in innovation. That is why the formation of an effective institutional environment is pretty slow.

One of the main disturbing obstacles to increase innovative potential of Ukraine is the institutional gap between science and industry. For example, in other developed countries, science became a locomotive, a productive force. In Ukraine, an explicit part of the production capacity is not used or is not ready to adopt the scientific and technological innovation. The existence of this gap reflects a problem of inconsistency and lack of economic and social incentives for the development of science.

Another problem of a slow transition to an innovative model is high transaction costs. The researchers attribute this to the distortion ofmarket of information and price signals, due to mismatch of supply and demand for innovative products, as well as significant structural imbalances in the national economy, along with high degree of monopolization in the innovation sphere [3, p.197]. High transaction costs, in turn, couldbe explained by the incompleteness of innovative products and services market formation, as this market is quite fragmented due to the existence of the expansion of world leaders that create difficult conditions for domestic producers of innovative products.

As for the world economic environment, the introduction and interaction with international organizations provide additional positive impulses to the development of the Ukrainian economy. However, a significant obstacle in this process is the high external debt of the country, coming out of the credit system of the IMF. This reduces the possibility of Ukraine's further use of the resources on reconstruction and improvement of the institutional environment in the field of innovation. This interference into the process of institutionalization is unavoidable, not only today but also in future periods.

That is why it can be concluded that the innovative potential of Ukraine may be used only as a gradual reconstruction and organic restructuring of the national economy. Institutionalization process is slow, causing the impossibility to create effective institutions and interactions between them. This not only slows down the development of Ukraine as a whole, but also makes it impossible to solve this problem due to the existence of complex credit and monetary relations with international organizations. The prospect of the transition to an innovative model of development is determined not only by the institutions, but also, in particular, by the depth and nature of economic and institutional reforms that will be positive in the innovation sector of the economy. In the institutional area we need to implement the institutionalization that would take into account huge domestic experience of scientific development, as Ukraine managed to follow scientific traditions that can regenerate and create new conditions for sustainable economic development.

 

REFERENCES

1. Chukhno, A. Institutionalism: Theory, methodology, value // Economy of Ukraine. – 2008. – № 6. – P. 4-13.

2. Afanasieva, Y. Innovative development: a new concept of monopoly and competition // World Economy and International Relations. – 2005. – № 2. – P. 31-34.

3. Dorofiyeva, Y. Analysis of socio-economic factors of innovation of the development of Ukraine // Regional problems of human and social development: Abstracts and messages of intern. scientific-practical. conf. (Donetsk, 4-5.11.2008): In 2 Volumes – Vol. 1 / NAS of Ukraine. Institute of Economics; Edit.: O. Amosha and others. – Donetsk, 2008. – P. 195-200.

4. Geets, B. Nature of transaction processes to a knowledge economy // Economy of Ukraine. – 2004. – № 4. – P. 4-14.