CC BY
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УДК 330.34
M.S. Gridnev
INTERRELATION OF MONOPOLISM, INNOVATIVE ACTIVITY AND INSTITUTIONAL ENVIRONMENT IN THE FRAMEWORK OF ECONOMIC GLOBALIZATION
The paper analyses compatibility of monopolism, innovative activity and postindustrial institutional environment at the global level, highlights particular importance of innovative activity and institutional environment in the framework of structural and technological modernization of economy The author studies interaction of innovative and institutional relations and monopolism relations in postindustrial economy.
Key words: monopolism, competition, innovative activity, institutional environment, globalization and economy modernization.
M.C. Гриднев
ВЗАИМОСВЯЗЬ МОНОПОЛИЗМА, ИННОВАЦИОННОЙ ДЕЯТЕЛЬНОСТИ И ИНСТИТУЦИОНАЛЬНОЙ СРЕДЫ В УСЛОВИЯХ ГЛОБАЛИЗАЦИИ ЭКОНОМИКИ
В статье анализируются вопросы совместимости монополизма, инновационной деятельности и постиндустриальной институциональной среды на глобальном уровне, отмечается особое значение инновационной деятельности и институциональной среды в условиях структурно-технологической модернизации экономики, комплексно исследуется взаимодействие инновационных и институциональных отношений и отношений монополизма в постиндустриальной экономике.
Ключевые слова: монополизм, конкуренция, инновационная деятельность, институциональная среда, глобализация и модернизация экономики.
In the modern conditions of intensive post-industrial economic development innovative resource has come to be regarded primary resource. Reproduction processes are rooted in the new knowledge that is accumulated and translated into fundamentally new manufacturing capabilities. The implementation of new knowledge and innovation processes are carried out through investment and subsequent utilization of new technologies and production assets which form its reproductive cycle and increase national wealth.
Demand for innovation in a society is determined by its willingness to increase national wealth, create conditions and provisions for economic growth, increase national income, improve consumption and saving. Investments in innovations are the second component of aggregate demand which depends on the national income, i.e. state of the economy at any given time. In their turn, players in the real sector of economy are turning to innovation because of their need not only to maintain the profitability of their businesses, but also gain a competitive advantage in the marketplace.
The global innovation revolution has introduced into the world production systems continuous updating of technology equipment and management. Key reserves to increase innovative production lie in national technological know-how. The problem of the commercialization of that knowledge is always the most difficult because it is complex and multifactorial. Direct state involvement in these processes is only possible in the defense industry and the production of public goods. The main task of increasing the production of new competitive products rests on private capital which in recent years has been concentrated in the financial sector due to its greater profitability for investment.
Long-term investments in innovation are accompanied by high risks, and there is a need for special innovation environment where special communications should be created that are resistant to external influences. The instability of innovative processes, murky economic relations between economic actors lead to a considerable waste of time and finances, as well as underutilization of the potentially competitive domestic innovations.
The development of innovations can be based on: scientific-technical complex, fundamental science, highly qualified scientists, vast natural resources, relatively well-developed transport and communication structure. This involves the creation of a favorable economic environment: legislative support, improving the mechanisms of state support, creating an innovative structure, a network of small innovative organizations that specialize in providing scientific and technical services.
Globalization of the economy means not only the internationalization of the economic structure through interregional and inter-state contracts, but also global integration when each of the entities of the world economy - nationstates, state associations, multinational corporations (MNCs), national companies operating in the global market, and according to some researchers even private individuals - becomes part of the global economic system and that indicates the beginning of a global society and global economy [5, p. 112].
The main field of globalization is the international economic system, i.e. global production, exchange and consumption carried out by enterprises in national economies and the global market [4, p. 37]. Further socio-economic development of national economies and their full integration into the ongoing process of globalization of the economy can be achieved only if there is a transition in economic
reproduction, especially in industries, to an innovative way of development which aims to ensure the competitiveness of each of the elements.
The theory of economics has produced a definition of the essential features of the modern globalized economic system. First, it is characterized by greater dependence of the dynamics and quality of economic growth from technological shifts changes that are caused by innovations. Secondly, in the 'new economy' science primarily focuses on the needs of the economy not forgetting about fundamental research. Thirdly, there are radical changes in the implementation and funding of research in high-tech areas provided by the private sector. Fourth, the "new economy" is a network structure.
Innovation acquires particular importance in the globalized markets because all the processes occurring in them, including the creation of a competitive structure, differ significantly from national processes. Fierce international competition has made expansion of cross-border activities of monopolistic companies very significant [7, p. 126]. As a result of transnational transactions market structure is nearing oligopoly when even in national markets several major MNCs have control of the market. Therefore it is important to study the correlation between innovation and monopoly on the global level.
The claim that monopolistic structure is not interested in innovations seems debatable. Obviously, in order to stabilize its monopolistic position a company in a market economy will be forced to further develop through innovation. At the same time, monopoly, which has been created as a result of market competition and going out of business of backward, weak, and technically underdeveloped businesses, promotes progressive concentration of strong economic agents, stimulates production and facilitates technical progress. We agree with J. Schumpeter that only large organizations-monopolists who experience constant competitive pressure are able to create major innovations aimed at fundamentally new products and technologies rather than partial improvement of already developed technological principles [10, p. 68].
Thus, even a monopolist in a national market as a result of competitive forces can be considered as the main participant in the innovation process. MNCs form oligopolistic structure of the global market and compete with each other and with economic agents of the national markets. According to some researchers integrated monopolistic corporations bring social benefit as they provide due to the synergetic effect higher quality and lower prices of goods and services than in the case of perfect competition [9, p. 63].
The transformation of MNCs into a key instrument for the development of globalization has largely manifested itself in the nature and depth of their impact on development and dissemination of technologies, i.e. innovations. If new technological principles were developed and are still being developed primarily by states (or with their direct support), the majority (by some estimates, about 80%) of new technologies, i.e. ways to implement these new principles are developed by multinational corporations [3, p. 72]. The distinctive feature and one of the main principles of MNCs is the pursuit of technological leadership as the basis of competitive advantage in the markets in the world today [7, p. 124]. One of the main features of competition in the global economy is its fundamental inseparability from innovation and information in the form of knowledge. The
principal methods of competition now are non-price, and introduction of innovations seems to be one of the most important among them.
At the same in the information globalized economy time the content of the products (quality, technical properties) are in a way substituted by external characteristics (trademarks, brands). Thus, a mechanism for obtaining value-added in information globalized economy is largely identical to the value added, for example, in the fashion industry where products of the world-famous fashion houses are more expensive than products of not as well-known brands even made from the same materials and comparable in quality.
This situation has led to simulation of innovations when modifications which do not affect functional properties of products and are not labor-intensive are presented in the market as an objective innovation due to the specific features of the information economy. As an example we refer to actively practiced in the developed countries campaign of updating product packages, according to marketers it increases product subjective value to the consumer and, accordingly, its value added, although the former packaging was consistent with all the requirements of quality standards and subjective standards of the consumers. It is interesting that initially this approach did not find understanding among Russian consumers who did not think it necessary to perceive improvement in an already good package as improvement in product quality and, therefore, to pay for it. It seems that this can only be explained by low informationalization of the Russian economy which according to a number of parameters is not even a post-industrial economy. With the growing role of information technology in the economy the simulation of innovations becomes commonplace, and as a result value added is not in the full sense illegal and unrealistic, because it is actually "added" but not to the product itself rather to its "image" in the perception of consumers; innovation developer really bears additional costs.
In the normal course of business on the monopolized global market there is another aspect. "The process of globalization ... makes firms more actively seek and use new technologies, optimize the management and thus aligns the capabilities of companies from different countries in the world market" [8, p. 65]. That is how most scholars explain the strengthening of alliances, combining the resources of competing companies for the implementation of joint marketing, investment and innovation projects on the basis of long-term agreements without the establishment of common management structures and the integration of productive assets [6, p. 63]. Consequently, participation in innovation projects for multinational companies means an opportunity to take its rightful place in the global economy.
The transition to an innovative development of national economy is impossible without the establishment in Russia of the institutional environment conducive to the growth of entrepreneurial and innovative activity on the basis of creative freedom and self-realization of each person. This institutional environment is characterized by many features, including [2, p. 133]:
- High level of personal security (safe environment, low crime rate, efficient system of law enforcement);
- Developed democratic institutions, the functioning of efficient structures and mechanisms of civil society, public
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influence over the activities of state and business, low corruption and high level of trust in government institutions and policies;
Developed competitive environment,
- Favorable conditions for establishing new companies, including in the innovative sectors of the economy;
- Protection of property rights (including intellectual property), contractual obligations, an independent judiciary;
- Efficient functioning of land and real estate markets, system of financial institutions, adapted to the needs of an innovative economy;
- Efficiency of public administration and local self-government in meeting modern needs of the socio-economic development.
The formation of the modern system of institutions is essential for the long-term strategic goals of innovation development of the Russian economy. It is necessary to ensure consistent and effective development of the institutions that govern political, social and economic aspects of development.
Institutional environment is necessary for an innovative development and in the long run will be formed in the following areas.
First, development of political and legal institutions for ensuring protection of civil and political rights of citizens as well as execution of the adopted legislation (the problem of "enforcement"). It is about protecting fundamental rights, including security of person and property, independence of the judiciary, effectiveness of law enforcement, freedom of the media.
Second, improving the institutions for the development of human capital. This is especially true of education, health, pension system and housing. The key problems of these sectors require institutional reforms for developing new operational rules.
Third, establishment of an integrated system of economic institutions, i.e. legislation to ensure sustainable operation and development of the national economy, economic growth and structural and technological modernization of the economy.
For establishing a system of economic institutions it is necessary to take measures to promote competition in markets for goods and services, development of market infrastructure, and solve many other problems to ensure the efficient functioning of a market economy.
First of all, it is essential to create a competitive environment as the key precondition for developing incentives for innovation and increased efficiency through reducing barriers to market entry, de-monopolization of the economy, ensuring equal conditions of competition. To do this a warning system is required to prevent and suppress competition-restricting actions of government and business. More effective regulation of natural monopolies, de-monopolization and development of competition in the finite natural resources sector, particularly marine biological resources and minerals are needed.
Fourth, supporting institutions designed for addressing specific systemic problems of economic modernization and growth, i.e. rules of the game aimed not at all participants of economic or political life but some of them.
Fifth, creation of an effective strategic management system that ensures a harmonious formation and development of all the above types of institutions and aimed at the harmonization of fiscal, monetary, structural, technologi-
cal, innovation, regional and social policies to solve systemic internal development problems and to respond to external challenges. It includes interrelated programs of institutional reforms, long-term and medium-term forecasts of economic development, science and technology, policies (energy, transport, etc.) and development programs for key economic sectors and regions, long-term financial plan and budgeting system based on the results.
Russia has yet to formulate a comprehensive system of reproduction of innovations. Key economic actors capable of assuming responsibility for different elements of innovation reproduction cycle are not yet identified. We still are, according to experts, at the stage of conceptual design [1, p. 86]. Despite extensive research, publications and policy statements of the authorities strategic goals of technological development are not clearly defined so far, rules of "innovation game" and necessary elements of innovation infrastructure such as "business angels", innovative banks, venture capital funds, etc. are lacking. There is no well-tested innovative risk management system. That is why during the entire period of the post-Soviet reforms we are only at the first stage of the innovation reproduction cycle. Innovative modernization of the economy is not a goal but a means to address such serious problems facing the country as the preservation of territorial integrity, improving competitiveness of the economy and quality of life.
The effectiveness of institutional changes reforms depends on the extent to which the adopted legislation is enforced. In Russia there is a significant gap between formal (laws) and informal norms (actual behavior of economic agents) resulting in inadequate law enforcement and indifference to that problem on the part of the state, business and general population, i.e. legal nihilism. This situation complicates the formation of the institutional environment necessary for the innovation modernization of the economy.
In the medium run the development of technology and innovation will be largely determined by the state support from the federal budget, improving the innovation infrastructure and regulatory framework in this area. A target-oriented approach to regulation of technology and innovation sphere using both traditional (federal and departmental target-oriented programs in scientific and technological areas or relevant parts of these programs) and new financing instruments for research and development from the state budget (state financial institutions for development, venture capital funds, etc.) should be further developed. An important role in the development of science and innovation will be played by restructuring of the scientific sector and introduction of new principles of its financing.
Thus, the trans-nationalization of Russian companies requires state support and encouragement of their innovative programs. At present, innovations in the Russian economy, especially at the level of basic innovations, are episodic in character nature which is caused by a lot of objective reasons, in particular by the lack of a unified federal conception of innovation and institutional development and by the fact that the federal and regional authorities lost the functions of innovations management during transition to a market economy including the regulation and stimulation of innovation in the corporate sector of economy
Given the current market conditions institutional activities of the state in the sphere of innovation should be carried out jointly with the transnational business and focus
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on the structural and technological changes in the economy, aimed primarily at the diversification of industrial production and establishing high-tech industries through the introduction of advanced research and development that will enhance the competitiveness of Russian MNCs in the global marketplace and increase the country's economic potential at both national and global level.
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удк 330.142 Ye.B. Zhukova
SPECIAL FEATURES OF FORMATION OF HUMAN CAPITAL IN THE POST-INDUSTRIAL ECONOMY
The paper is devoted to the analysis of institutional interests in postindustrial economy from the point of view of human capital development. Special attention is given to the forms of institutional interests. The author puts forward a classification of institutional interests with regard to priority development of innovative potential. Characteristic features of postindustrial economy connected with formation of new interests of institutional units are identified by the author.
Key words: postindustrial economy, institutional interests, institutions, innovations, human capital.
Е.Б. Жукова
ОСОБЕННОСТИ ФОРМИРОВАНИЯ ЧЕЛОВЕЧЕСКОГО КАПИТАЛА В ПОСТИНДУСТРИАЛЬНОЙ ЭКОНОМИКЕ
Статья посвящена анализу институциональных интересов в постиндустриальной экономике с точки зрения развития человеческого капитала. Особое внимание уделяется формам институциональных интересов. Предлагается классификация институциональных интересов с точки зрения приоритетного развития инновационного потенциала. Автором выделены характерные черты постиндустриальной экономики, связанные с формированием новых интересов институциональных единиц.
Ключевые слова: постиндустриальная экономика, институциональные интересы, институты, инновации, человеческий капитал.
The development of the post-industrial economy has brought to life new economic institutions that form a new institutional “face” of the Russian economy. Changes in the economic institutions in the framework of the systemic transformation of the Russian economy determine new institutional interests of the agents of the market economy.
Human capital formation has been widely discussed in the scientific, applied and academic literature. The economic concept of “human capital” enables us to describe and explain through the prism of human interests (institutional interests among them), many economic processes. The composition of productive forces and capital, generation and income distribution, economic growth and national wealth are described in the economic theory with the help of the concept of “human capital”. Human capital in its turn is directly related to the concept of “institutional interests”, and this relation is reciprocal.
Changing behavior of economic agents entails a change in the structure of demand and market structure or emergence of new markets, which, in turn, leads to the necessity of changing organizational forms that meet certain forms of ownership, which ultimately has an impact on human capital formation at various levels: in households, corporations and state as a whole. New organizational structures (companies, firms, organizations, etc.) work out a new concept of adapting to the changes: look for promising products and services, forecast demand, plan activities and specific marketing strategies.
Therefore, the entire market infrastructure as well as consumer preferences have to change and there is a longterm basis for the further transformation of economic institutions. This complex relationship is an essential part of the dynamic imbalance in the socio-economic system [2, p. 48 - 50].
