Innovative Processes – Fundamentals of Economic Development

Abstract

   Objective condition and main task for the modern social-economic development of a country is transfer to its innovative trajectory, and utilization of principally new factors for economic growth characterizing postindustrial information era in maximum extent. This task is extremely important for Georgia, where the necessity to transfer to the innovative way of economic development requires the activation of innovative activities. In the presented article, conceptual methods of approach of development of efficient innovative activities and processes are considered under the market conditions. Our work is aimed at the innovative processes, as the basis for economic development, and theoretical and practical aspects of innovative processes in general.

   The Work studies and analyzes the structure and models of innovative process and main lines of its development under the modern society.

   The first concept (technology push-model) assumes that development occurs through technology, with the market acting as a passive consumer of innovative activity, responding to the implementation of innovations and forming demand based on their outcomes. This model prevailed until the mid-1960s.

   The second approach (need-pull model) was developed in the second half of the 1960s to the early 1970s. The essence of this approach is that the innovative process is initiated by the market and depends on changes in demand. In the 1980s, the third approach (coupling model) emerged, which attempted to synthesize the first two approaches and was based on the status of their priorities. This model is also called the "chain model." Innovations are seen here as a dynamic process that can be modeled by a combination of two types of interactions and their feedback loops. After that, a fourth approach began to actively develop, known as the "Japanese advanced experience model." This approach focuses on the parallel activities of integrated groups and their horizontal and vertical connections. The fifth model, which has been actively developing since the early third millennium, is the strategic networks model. Its characteristic feature is that successful innovative development requires the creation of a network of innovators, innovation clients, and users, which operates continuously. This involves scientific-research and experimental-design work using the latest information technologies. The study clearly defines the directions of innovative process development in modern society, noting that contemporary innovative processes have complex structures, spatial-temporal dimensions, specific trends, and development dynamics. Scholars of science and technology economics call the current global stage of development the "era of innovation" and the first half of the 21st century the "era of radical innovations," which will change and transform the face of humanity.

   Particular attention is given to the study of the role and significance of innovative processes in economic practice, as well as their social nature.