Institutional development and propensity for innovations: trends and prospects for Ukraine

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Authors:

O. V. Yermoshkina, Dr. Sc. (Econ.), Prof., orcid.org/0000-0002-4013-3575, National Mining University, Dnipro, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; This email address is being protected from spambots. You need JavaScript enabled to view it.

L. G. Solianyk, Cand. Sc. (Econ.), Assoc. Prof., orcid.org/0000-0003-3291-3931, National Mining University, Dnipro, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract:

Purpose. To define and characterize the institutional background for improving the propensity for innovation of economic entities under developing economy condition in the framework of globalization and significant fluctuation in the global growth using the basics of institutional theory and behaviorism.

Methodology. The theoretical and methodological basis of the research in the field of innovative activity of individuals and enterprises involves fundamental scientific concepts, theoretical insights of the scientists in the field of innovations, innovative behavior, and propensity for innovations. Methods of logical generalization, economic and mathematical modeling, system analysis, and mathematical statistics are used.

Findings. The theoretical and methodological basis of studying the process of creation and implementation of innovations was analyzed from the point of view of institutional and behavioral theory by defining the institutional distortions in innovative activity of the domestic enterprises. Based on the fundamental issues of institutional and behavioral theory, the analysis of the investment climate in Ukraine has been conducted. The basic correlations of level of innovation activity and business efficiency were defined and the measures for improving and stimulating the propensity for innovations of economic entities have been proposed and substantiated.

Originality. Unlike the existing theoretical approaches basing on the analysis of statistical data and analytics, the necessity was substantiated to base the state policy in stimulation of innovation activity on the concept of differentiation of the propensity for innovations by stages of implementation of innovations, behavioral motives and risks taken at different stages of creation and adoption of innovation. It is also proved that the existence of the ad-hoc type of institutions is conditioned by the propensity of economic individuals to make objective and subjective decisions based on: their own experience, existing official institutions and probability of opportunistic behavior of both economic entities and their groups, connected by different nature and degree of relations as well as density of communication. Such results allow defining four types of innovative behavior of economic entities depending on the degree of economic development.

Practical value. The theoretical research and conclusions have been transferred into particular methods and measures to stimulate the propensity for innovations of economic entities under conditions of institutional distortions of economic and legal system, which will allow creating an effective system for innovation acceleration at macro and micro levels.

References.

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3. Gennaioli, N., Shleifer, A. and Vishny, R.E., 2012. Neglected risks, financial innovation, and financial fragility. Journal of Financial Economics. Available at <http://www.nber.org/papers/w16068> [Accessed 21 May 2017].

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5. Ukraine: Reformen im Land zügig umsetzen [CDU/CSU Fraktion im Deutscher Bundestag [online]. Available at: <https://www.cducsu.de/fhemen/aussen_europe_und_verteitigung/Ukraine_vofovmenim_land%20Zuagigumfetzen%20CDU/CSU%20Fvahtion%20im%20Deutschen%20Bundestag> [Accessed 30 April 2017].

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ISSN (print) 2071-2227,
ISSN (online) 2223-2362.
Journal was registered by Ministry of Justice of Ukraine.
Registration number КВ No.17742-6592PR dated April 27, 2011.

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