INVESTMENTS IN INNOVATION AS THE DEFINING FACTOR OF ECONOMIC GROWTH

Nowadays the concept of the long-term development of the country as a part of the change in the national economy is being implemented. The modernization of the economy through the provision of innovative activity that could ensure a high level of economic growth plays the main role. The authors focus on the R & D as a part of the innovation sphere. Intensification and support of innovation is the major factor of development and modernization of the national economy, as well as contribute to strengthening positions at the international market and enhancing the level of competitiveness of the Russian Federation. The article provides evidence of the relationship between the investments in research, development and increasing economic growth by calculating the correlation relationship between research, development costs and the gross domestic product of the Russian Federation in the period from 2014 to 2018. Also, the state role in the development of innovative activities of the economic entities was studied, and the measures of state support of innovative activity were researched. A review of the scientific literature on the chosen direction was held, analysis and synthesis of the information obtained using the endogenous mathematical model of economic growth to assess the significance of investment in research and development was carried out. Innovation is one of the main conditions of economic growth. For Russia, the task of transitioning from a raw-material economy to a knowledge economy remains relevant, which, of course, requires a huge amount of intellectual costs to create innovations. Without any support, new technologies cannot “defeat” the economic backwardness of the country. Despite the positive dynamics, no significant changes were achieved in this area, but the authors suggested some ways to raise the country’s innovative activity effectively.

economic growth, R & D, innovation, model of endogenous economic growth, government support, investment, GERD, economic development, innovation sphere, external effect, government co-financing.

Kalabin V. A., Nurislamova N. R., Oleynik G. V. Investments in innovation as the defining factor of economic growth. Business. Education. Law, 2019, no. 3, pp. 216–221. DOI: 10.25683/VOLBI.2019.48.377.