Doctor of Economics, professor Dulambaeva R.T., Aitmyrzaeva Gulsara

Kazakh national University named after al – Farabi, Kazakhstan

The optimality of the market innovative products

The market for innovations (hereinafter REA) - the connecting link elements of the national innovation system. Its role is to establish effective mechanism of interaction between the real sector of economy and scientific-production complex (SPC), which is a collection of public and private research institutes both within the country and abroad. For any RI, even the most minor unrest in the economy are reflected in changes in the qualitative and quantitative characteristics of supply and demand. If we rank all existing markets according to their level of dependence on external conditions, the innovation market is the most sensitive, due to the specificity of the product, which is the object of market relations [1].

New technology or innovation is a commodity. In the mid-twentieth century Austrian economist Joseph Schumpeter distinguished between two categories of final implementation of creative activity of a person or group of people – the invention and innovation. The invention is an idea, which for some reason was not applied tested and only exists in theoretical models. Innovation, by contrast, passed the practical test and proved its effectiveness. Object relations RI are exclusively on innovation, which in turn can be both applied and fundamental. The first are characterized by the ability to improve a specific production process, in which they were created. A set of unique application of innovation determines the long-term technological strategy of each firm in the market.

Fundamental innovations have a direct impact on the whole socio-economic system. RI actors are the agents of supply and demand. The demand comes from productive sectors of the economic system, structured on commodity markets of products that meet a specific set of needs. As an example of the commodity market can lead to market power for which there are companies offering the identical product but nevertheless produced in different production processes (nuclear energy, water and air flow, solar energy and fuel energy, geothermal energy). All of these various processes in varying extent are competitors for each other. The proposal in turn is formed by the complex of domestic and foreign research institutes. Feature of NPC is its production capacity to meet demand in new technologies across the list of industries [2].

Optimality is achieved for RI while observing the participants of a number of principles that reflect the General philosophy of behavior under the influence of their management decisions endogenous and exogenous, i.e., coming from natural and random processes occurring in the economy, factors such as competition, monopoly, management, innovation activity, monetary and government policy and so on. In other words, any causes that lead to a decrease in activity in RI by both the CDD and the real sector are either irrational cause-and-effect relationships in economic relations, or independent processes. Thus, given the high importance of globalization in the field of trade and economic relations between different countries, any irrational behaviour of participants in foreign markets will lead to serious domestic unrest in RI. In this case, the problem of uneven development of countries has become a dangerous destabilizing factor for any economy in the world. Technological progress is exogenous or a stochastic process, destabilizing the optimality of RI for, because it is based on creativity, and not business logic and therefore impossible to accurately predict the time of occurrence of a specific innovation. The random nature of the emergence of new technologies in time – the main problem of the empirical testing of macroeconomic models with endogenous technological progress (Romer, Lucas, Grossman), which is entered as a financing process R&D and R&E economic entities. One of the first models of economic growth, allowing to take into account the random nature of innovation, was proposed by H Jones, who used the Poisson distribution to describe the rate of appearance of new technologies [3]. Table 1

The main indicators of innovative activity in Kazakhstan in 2010-2015

Indicators	2010	2011	2012	2013	2014	2015
Gross domestic product, billion tenge	5870.1	7590.6	10213.7	12 849.8	15907.0	15887.78
Domestic expenditures on research and development in current prices, million tenge	14579.8	21527.4	24799.9	26 835.5	34761.6	38 988.7
As a percentage of gross domestic product	0.25	0.28	0.24	0.21	0.22	0.24
The number of organizations performing research and development	295	390	437	438	421	414
The share of innovative products wit %	1.27	1.58	1.53	1.19	0.69	0.51
The number of employees engaged in research and development	16715	18912	19 563	17 774	16 304	15 793
The level of innovation activity	2.3	3.4	4.8	4.8	4.0	4.0

In relation to the market of innovative products, the unevenness of technological progress poses four problems of optimality, namely: 1. The choice of the optimal innovation path of development of production in the long term taking into account stochasticity of the process of emergence of new technologies.

2. The choice of the optimal innovation path of development of production in the long term given the uncertain economic environment of business. 3. The influence of globalization on innovation industries. 4. The flexibility of the economy in suboptimal development of technology [4].

The first problem raises the question about the optimality of the market innovative products. If, at some point of time, the company with the best technological strategy in the long run leaves the market due to the fact that competitors with obviously the worst technological strategies were able to offer consumers a new quality product for more than a short period of time, then further RI for the industry is not developing optimally. The second problem is the constant change in economic conditions of business. This dynamic process is characterized by the impact on the economy of a huge number of factors to take into account and predict that not even the most sophisticated computer models. As an example, we can cite the global economic recession of 2008-2009 and the unwillingness of economic entities around the world to drastically altered conditions. If the company with the worst technology strategy obtains a competitive advantage over other firms in the market because of variability in economic conditions affecting the qualitative characteristics of demand, then this situation may not lead to optimality in RI. Firms with the best technological strategies in the long term can leave the market due to lack of competitiveness in a specific time period. The third problem exists in the context of the first two. The principles of free competition and openness of markets to external counterparties contribute to the parish on the domestic market products produced in other countries with different economic conditions. On the optimality of RI exists only if the nonresident in a competitive market gets the advantage by offering a better quality product, but not at the expense of more favorable economic conditions for conducting economic activity in the country where the goods are produced [5].

All of the above problems of the violation of optimality in the market of innovations will ultimately reduce the pace of economic growth and the deterioration of its competitive potential in the global commodity markets. The existence of institutional and financial mechanisms to facilitate rapid reorientation of the economy towards more technologically adapted production determines its flexibility. First of all, the reorientation related to the search for more effective ways to manufacture existing products, which was broken on the optimality of the RI and find new open markets, life cycle is at the beginning. Strategy of identification of violations of optimality in the market of innovations includes the study and analysis of the magnitude of the impact of new technologies on the productivity of unit labour engaged in the production of a competitive product to the real economy in the long term for a number of countries. In 1999 a Spanish macroeconomist Jordi Gali suggested a method to identify the level of influence of innovations on the productivity of the whole economy using vector autoregressive model with the condition that only new technologies can improve productivity in the long run. The validity of this approach was proven in 2002 by economists Neville Francis and Valerie Ramey. After ranking of all sectors according to the level of productivity it is necessary to analyze the state of competition in the relevant markets. As an example of firms in oligopolistic and monopolistic market with high productivity in most cases are representatives of the fifth technological structure, due to the fact that even in a state monopoly market opened to competitors due the high creativity in creating new product. This conclusion is consistent with the principle of "continuous innovation process" Russian economist Sergei Glazyev and the tenets of the new Keynesian school of economic theory, whose representative is Nobel laureate Joseph Stiglitz .

References

1. В.Я.Горфинкель, Г.Б.Поляк, В.А.Швандар; «Предринимательство», «»Юнити», Москва, 2002 2. Шумпетер Й. История экономического анализа в 3 тт. — СПб.: Экономическая школа, 2004. — ISBN 5-900428-65-6, 5-900428-61-3, 5-900428-60-5, 0-415-10888-8, 5-900428-64-8. 3. Инновации в корпусе гуманитарных идей : материалы конференции Института фундаментальных и прикладных исследований МосГУ 16–17 февраля 2012 года. Ч. 1 : сб. науч. трудов / под ред. Вал. А. Лукова, Вл. А. Лукова ; Моск. гуманит. ун-т. Ин-т фундамент. и прикл. исследований. — М.: Изд-во Моск. гуманит. ун-та, 2012. — 83 с. 5. И.Т.Балабанов; «Инновационный менеджмент», «Питер», Санкт-Петербург, 2001