Innovative Economy

An innovative economy is a type of economy in which profit is provided not by material production, but by the concentration of financial centers. It allows to generate a stream of innovations, continuously raising the bar in a kind of technological competition. Thanks to this sector, the economic superiority of the country in which innovations are implemented is ensured.

Innovative development of the economy is provided due to the formation of new markets for intellectual property, ideas, developments, products. Old economic structures are being sorted out and transferred to another quality. There are new organizational forms for the structures of innovative economy and companies: corporate centers, technology parks at universities, special trading platforms and so on.

Financing of innovative economy

The process of capital replacement is carried out at all stages of the innovation process. Funding of fundamental science by the state is carried out through investments in infrastructure, scientific grants. This investment of funds attracts scientific teams that compete with each other for receiving funds for new research and development. The main task of this stage is to obtain an abundance of ideas. Most of the ideas will not be successful, but it will create conditions for the process of capital replacement. Inventions and patents are acquired by private firms, and their shares are sold to investors who are striving to receive super-profits. So the innovative economy receives new financing already at the expense of private investment.

When developments and ideas develop and reach a higher level, they become interesting to larger corporations. Even before the advent of prototypes, foreign investments are beginning to be attracted , the market is warming up.

At the last stage, capital replacement begins with end users of products, in which various developments and ideas are brought together.

Innovative Economy of Russia

Today, the innovative economy of Russia in the overall scale of the country's economy is extremely insignificant. Its key element today is research units of various foreign corporations, whose operation is based on the principle of intellectual outsourcing.

The main problem that impedes the development of this sector in the country is the lack of sufficient demand for new ideas in the domestic market. For an innovative economy to become interesting to most business people and start developing successfully, first of all, modernization of industrial capacities is needed, which will help stimulate demand for it.

At present, the Russian Federation is nothing more than a raw material appendage, which, in the context of the rapid reduction of natural resources, is an absolutely hopeless situation. Another negative consequence of the innovation gap is the low competitiveness of the country. In addition, if Russia's plans include the successful expansion of markets and access to new international markets, it is the innovative economy that will give such an opportunity, since this sector contributes to the creation of new markets. And to gain a foothold in a new market and become a leader is much easier than trying to fight in the old in a highly competitive environment.

To date, the most promising sectors in the Russian economy can be considered energy and oil production. The fuel and energy complex can give an impetus to the innovative development of the entire economy of the country. However, without sufficient government support, this sector will not be able to develop at a sufficient pace.