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Section 14. Economy
Abuzjarova Maria Ivanovna, Ph.D,. in Economics, associate professor, Samara State University of Economics Department of "Management" E-mail: prekrasnova.v@mail.ru
FORMATION OF THE INSTITUTIONAL ENVIRONMENT IS THE KEY FACTOR FOR THE INNOVATIVE DEVELOPMENT OF THE COUNTRY
Abstract: The presented article deals with the formation of an institutional environment that determines the direction and speed of institutional changes, creates conditions and guidelines for selection of effective elements of the institutional structure from alternative forms of economic coordination. The emphasis is on turning the internal structure of the company into a network that will allow greater transparency in management and coordination, create greater openness of the company, lead to a decrease in transaction costs of an innovative nature.
Keywords: innovations, innovative development, technological changes, economic growth, competitiveness of the country.
Globalization has led to a change in the traditional nature of innovation processes.
The production and promotion of new products to world markets now require the construction of global networks, including specialized suppliers, major producers and consumers connected by a technological chain.
Innovations in the innovation economy are provided by the following most important conditions:
- the wide diffusion of scientific knowledge and information;
- development of innovative infrastructure, innovation networks and the formation of innovative clusters at both the regional, sectoral and interindustry levels;
- the development of human capital, which is receptive to new knowledge, including providing the conditions for training and professional development of workers throughout life.
Transition to an innovative economy is possible only on the basis of the corresponding institutional transformations that are consciously generated at all levels of
state policy implementation and interaction between the state and civil society.
Since people and information are the main assets of an innovative economy, the transformation of institutions should be directed towards:
- development of people, growth of their creative potential, improvement of living conditions in society, stimulation of increase of implicit knowledge in the economy;
- creating conditions for accessibility for all, respect for the individual, human rights and privacy, transparency of public administration, social responsibility of private business.
There are different ways of allocating institutional levels. One of them is related to the power of the influence of certain institutions on other institutions, on the behavior of participants, on the development processes in general [1].
Another way is the possibility of making changes.
Institutions are implemented in changing the behavior of participants, but their influence depends on the fact that several of them are volatile.
Section 14. Economy
Here we distinguish three levels, which include: formal rules; informal rules; cultural traditions and values.
As a result, any institutional system appears in the form of a kind of pyramid.
Institutions are changing rapidly, because:
- levels of the institutional system vary at different rates;
- instruments of targeted influence on different levels of the institutional system are also different.
Development institutions are specialized state corporations (companies) whose activities are aimed at eliminating "market failures" that hinder the economic and social development of the country.
The basic component of the institutional environment is the institution, which is understood as the human-created restrictive framework that organizes interactions between them.
Institutes are created in order to ensure predictability of the results of a certain set of activities, guaranteeing its freedom and security within certain limits and saving transactional costs. They are aimed at creating conditions for the timely conclusion of contracts, the prevalence of legal operations over illegal, that is, to positively influence the growth of productivity and investment.
The role and importance of the institutional environment is that:
- institutions regulate access to resources and options for their use;
- establish the boundaries of possible ways of actions and lines of conduct;
- form a system of incentives and the basis of rational behavior;
- affect the allocation of resources between market participants and the degree of following personal interests.
The components of the institutional environment are:
- a system of institutions of formal economy (formal rules);
- informal rules [2].
The author believes that the main provisions of the theory of institutional changes are key to understanding institutional changes.
In accordance with it, changes in institutions mean the process of modifying the rules and enforcement mechanisms for their enforcement in order to reduce transaction costs.
In the theory of institutional change, there is a concept that explains the mechanism of institutional changes through the microeconomic model of the institutional market, where it is hypothesized that the market of institutions (the institutional market) has elements of the classical market: demand, supply, price and competition.
Proceeding from the analysis of theoretical approaches in this direction, the author constructed the function of entrepreneurs' demand for a certain institution in the following form:
Qd1=f{P, P1, P2 T, P, E, H, N, O}, (1)
where:
QdI - demand profile for the institute I;
PI - price of use of the institute I;
PI1 - the price of using substitute institutions;
PI2 - the price of the use of compliment institutes;
T - preferences of entrepreneurs;
Pr - expected current benefits of using the institute I;
E - expectation of entrepreneurs regarding changes in the external environment;
H - characterization of the rule in comparison with other rules;
N - number of potential users of the institute I;
O - other factors affecting the demand profile.
A variety ofineffective rules are administrative barriers, which are formal institutions of a special kind. If the main function of institutions is to save transactional costs, then administrative barriers, unfortunately, perform the opposite function, namely cause an increase in transaction costs.
To reduce the probability of occurrence of ineffective rules, it is suggested to use the strategy of managing the pace of institutional construction, as well as to develop forecasts for the development of institutions (institutional changes) in order to prevent a non-optimal way of development of the projected institutions.
Institutional design is the process of developing ideal regulatory models of economic institutions that are deliberately and purposefully implanted in mass economic behavior.
A number of criteria are proposed for solving the method of institutional design:
- special importance of solving this problem;
- many profile and cross-sectoral nature of the problem;
- a significant degree of influence of the solution of the problem in a certain sector of the economy;
- high social significance of the results to be obtained as a result of the implantation of a new institution.
The goal of institutional design can be production:
- an institution aimed at providing potential advantages over competitors;
- an institution aimed at redistribution of economic opportunities;
- introduction of changes and additions to the acting institute with the purpose of increasing its effectiveness.
Predicting institutional changes is a scientific study of possible, expected prospects for the development of institutions.
Predicting the development of institutions can be carried out in the following:
- changes in the current system of relative property rights (institutional arrangements);
- changes in the current system of absolute property rights (institutional environment);
- forecasting the duration of the life cycle of the institute;
- making a forecast of changes in the properties of existing institutions.
Based on the analysis of institutional changes in the sphere, we arrive at the following conclusions:
- institutional changes were accompanied by the creation of a new institutional environment adequate to the requirements of a market economy.
- changes in the institutional structure of the state expanded the freedom of entrepreneurial activity.
All this shows that the institutional environment is still in the process of transformation.
One of the priorities of the current economic policy of the state is the reform of the institutional environment ofbusiness aimed at enhancing competition and encouraging entrepreneurial structures that enter or open new markets [3].
The institutional environment defines the main directions of the development of the economic system, as
well as the guidelines, on the basis of which the production and selection of the most effective institutions is carried out.
It is necessary to carry out a set of works on the formation of a regional innovation system, where special attention should be paid to building an innovative infrastructure.
The leading goal of the regional innovation system should be the creation of scientific, technical, technological, socio-economic, legal conditions and mechanisms to ensure the sustainable development of all economic entities, increase the share of products with high added value in the gross regional product.
In accordance with this performance of this system, it is necessary:
- creation of conditions for the accelerated transition of the regional economy to an innovative type of development based on the application of domestic innovations and advanced foreign technologies;
- expansion of regional and interregional markets for innovative products and new technologies.
To promote the products of enterprises, it is necessary to organize work on the development of:
- special industry marketing programs to support exports to foreign markets;
- interactive mechanisms for promoting the products of local enterprises using modern methods of electronic business and information technology;
- virtual maps of regional needs in goods and services;
- development of an electronic logistics system for interregional commodity routes.
The need to search for new potential niches is dictated by the pressure of an ever expanding competitive environment.
The most promising areas of business development are the market of intellectual services and information technologies.
References:
1. Ivanov N. Social context of innovative development // World economy and international relations.- 2013.-No. 5.
2. Biryukov A. V. Inclusive development as a response to the challenge of globalization in American way / Proceedings of the international scientific conference «The geopolitics of the multipolar world». Issue 3.- Moscow.- 2012.
3. Commercialization of the results of scientific and technical activities: European experience, possible lessons for Russia.- Moscow: ZIPRAN RAS, - 2006. - 264 p.
