Innovational development for transitional economy – Russia case study

Abstract

The purpose of this article is to develop mechanisms of innovational development for countries with transitional economies. The methodological base of the research consists of a factor analysis of the structure of GDP adapted to the analysis of the innovational development of countries with a transitional economy, distinguishing the innovational sphere of the economy, the structure of manufactured innovational goods, the structure of the creation of leading production technologies, and the structure of the leading production technologies. During the course of the research, the authors determined the key problems inhibiting innovational development in Russia and other countries with transitional economies, determined the most important preconditions of Russia's transition to an innovation-oriented type of economic development, and offered instruments for Russia's transition to an innovation-oriented type of economic development. As a result, the authors developed working mechanisms of the innovational development of countries with a transitional economy. The authors come to the conclusion that the innovational development of an economy is an important condition for the adaptation of countries with a transitional economy to new market conditions because it allows the private manufacturing of products that are competitive in global markets. High innovational activity is one of the most important features of a market economy compared to an administrative & command economic system; thus, without the development of innovations, transitioning to a new type of economic system is impossible for countries with a transitional economy