ISSUES OF DEVELOPMENT OF INNOVATIVE ECONOMY IN A SPECIAL CATEGORY STATUS STATE

  • Kotov E.V. Donetsk Academy of Management and Public Administration under the Head of the Donetsk People’s Republic
Keywords: special category status states, innovative economy, research and development, production, services, economic system

Abstract

The article draws attention to the cyclical nature of the fragmentation of the territories of the post-Soviet space. It is indicated that for the first time these processes occurred in the western part of the once united state and that these processes are unfinished and can be continued in new forms with new conditions for implementation. The stages of regeneration of a separated economic system aimed at creating a separate economic and social system capable of independent reproduction are described. Opportunities and conditions for the development of the innovative economy of a state with a special status, as well as the constraints that hinder the efficiency and effectiveness of innovative processes, are examined using a specific example. The types of manufacturing of products and services that are promising in the context of innovative development are highlighted and mechanisms for their implementation are proposed. The possibilities and directions of economic cooperation and specialization to ensure the innovative development of the state with a special category status are determined. Based on the methods of analysis and synthesis, a systematic approach, the conditions and consequences for the economy of the decision to create a new territorial entity are shown. Using the grouping method, the reasons that impede the formation of an innovative economy and the opportunities for innovative development that a state with a special status receives in the event of economic integration with a stronger economy are systematized. Particular attention is paid to the problems of retaining qualified personnel and creating an effective public administration system, including state regulation of the innovation economy. The stages of the formation of a new economic management system are examined; its shortcomings and high dependence on established processes and relationships are shown. The organizational processes that determine the innovative potential of the state in the new conditions of functioning are disclosed.

Author Biography

Kotov E.V., Donetsk Academy of Management and Public Administration under the Head of the Donetsk People’s Republic

PhD in Economics, Docent, Senior Researcher, Associate Professor, Department of Management Theory and Public Administration, Donetsk Academy of Management and Public Administration under the Head of Donetsk People’s Republic (Donetsk, Donetsk People’s Republic). E-mail: kotovev@mail.ru

Published
2019-11-20
Section
QUESTIONS OF INNOVATIVE ECONOMIC DEVELOPMENT