Innovations as a basis for macroeconomic stability

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Date
2022-10-21
Authors
Mikiashvili, N.
Journal Title
Journal ISSN
Volume Title
Publisher
Київський національний університет імені Вадима Гетьмана
Abstract
One of the most pressing problems of developing countries is the consumer model of the economy. Unfortunately, economic development policy usually is directed to the stimulation of consumption, not to the growth of productivity. It is impossible to achieve an economically strong country with stable macroeconomics without a developed real sector. This paper aims to describe and analyze the difficulties, problems, and challenges that occurred in small open developing countries. We will try to focus on issues of macroeconomic stability. The paper describes the current economic situation and its short-term perspectives by using the Global Innovation Index. The Global Innovation Index is an annual ranking of countries by their capacity for, and success in, innovation. Innovation is important for the country's rapid economic growth and competitiveness. Innovation enables a company to gain a competitive advantage, eliminate competitors, create entry barriers, and quickly become a leader. With significant innovation, a company may even gain monopoly power. Innovation is important not only for companies to increase their profits but also for the population. The latter is the driving force of progress. Thus, through the developmentfocused policy, a state must direct the funds to improve the social and innovative fields (more qualified medical and academic personnel that have been needed so much, particularly in terms of the Pandemic, operable infrastructure, introduction of innovations, availability, etc.) and must stimulate the private structures to do the same. Society needs macroeconomic stability that brings social progress and determines the prospects for future development. Targeted innovation policies can reduce the unemployment rate, macroeconomic instability and improve social security.
Description
Keywords
Innovation, Macroeconomic Stability, Global Innovation Index
Citation
Mikiashvili N. G. Innovations as a basis for macroeconomic stability [Електронний ресурс] / Mikiashvili N. G. / Стратегічні імперативи сучасного менеджменту : зб. матеріалів VІ Міжнар. наук.-практ. конф. (21 жовт. 2022 р.) / М-во освіти і науки України, Київ. нац. екон. ун-т ім. Вадима Гетьмана ; [орг. ком.: Лук’яненко Д. Г. (голова) та ін.]. – Електрон. текст. дані. – Київ : КНЕУ, 2022. – С. 261–265. – Назва з титул. екрану.
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