Pushkinskaya st. 43. office 10
Rostov-on-Don, Russia
e-mail: info@hjournal.ru 
tel. +7(863) 269-88-14

cubsEN (2)

Innovation, Economic Order and Power

Innovation, Economic Order and Power

Journal of Economic Regulation, , Vol. 9 (no. 4),

The interrelations between innovations and economic order of society are investigated. The innovative immunity of the Russian economy is stated. It is shown that the lack of innovation is a problem of economic order or institutional model of the economy, which form the structure of motivations for economic behavior. The problem that is investigated in this paper is why the economic order (institutional environment) hinders innovation activity and new technologies. Economic order is the result of the motivation of economic behavior. Economic profit plays a major role in the incentive structure. Investments, innovations, technological progress, fall into the structure of interests and motives of economic agents to the extent that they contribute to maximizing profits. The models of economic profit creation are considered. Economic returns arise either as a result of the creation of advantages in resource efficiency or as a result of asymmetries or inequalities in the distribution of power. Analyzed the problem of the dominant of the dominant profit or income in the national economy. It is shown that in the Russian economy the dominant condition for the creation of entrepreneurial income is the possession of economic power. The reason is that access to power is a relatively more affordable, profitable and cheap economic benefit for a market agent than innovation and new technologies. The result of investments in power is the formation of the "economy of power". The author reveals the negative impact of the government economy on the incentives for innovation. The crisis of the dominant model of economic order is shown. The necessity of power policy, the purpose of which is to eliminate the excess of private power as a source of income generation, is substantiated.

Keywords: innovations; profit; dominant income; economic order; economic power

  • Bocage, D. (1985). General Economic Theory of Fracois Perroux. – Lahman: University Press of America.
  • Blaug, M. (1994). Economic Theory in Retpospect Blaug М. Delo Ltd. (In Russian.).
  • Brenner, R. (2014). The Economic of Global Turbulence . М. HSE Publishing House. (In Russian).
  • Brown, C. (2005). Is There an Institutional Theory of Distribution. Journal of Economic Issues, 39(4), 375–377.
  • Coase, R. (1993). The Firme, the Market and the Law. М.: «Delo LTD». (In Russian).
  • Dementyev, V. and Vishnevsky, V. (2010). Why Ukraine is not innovative state. Journal of Institutional Studies, 2(2), 88–89. (In Russian).
  • Dementyev, V. and Scherbakov, A. (2017). Profit and Economic Growth. Terra economicus, 15(3), 75–91. (In Russian).
  • Eucken, W. (1995). Basic principles of economic policy. М. Progress. (In Russian).
  • Eucken, W. (1996). The Foundation of the national economy. М.: Economica. (In Russian).
  • Galbraitn, J. K. (1976). Economics and Public Purpose. М. Progress. (In Russian).
  • Herrmann-Pillath, C. (1999). Social Market Economy as a Form of Civilization. Voprosy Ekonomiki, 12, 40–53. (In Russian).
  • HSE Data Books (2017). Indicators of Innovation in Russian Federation. National Research University Higher School of Economics. (In Russian). (https://www.hse.ru/primarydata). (In Russian).
  • Federal state statistics service of the Russian Federation (2017). Russia in numbers. М. Rosstat. (In Russian).
  • Knight, F. H. (2003) Risk, Uncertainty and Profit. М.: DELO. (In Russian).
  • Lazonick, W. C. (2008). Varieties of capitalism and innovative enterprise // Economic Herald of Rostov University, 6(3).
  • Olson, V. (2000). Power and Prosperity: outgrowing communism and capitalist dictatorships. New York: Basic books.
  • Oswalt, W. (1996). The theory of economic order as a methodology for the study of economic power // Eucken W. The Foundation of the national economy. М.: Economica. (In Russian).
  • Preiser, E. (1971). Property, Power and the Distribution of Income // Power in Economics. Ed. by K.W.Rothschild. Harmondworth: Penguin books, 1971, 119–140.
  • Report on the state of competition in the Russian Federation. (2016). М. FAS. (In Russian). (https://fas.gov.ru/about/list-of-reports/report.html?id=1720).
  • Russell B. (2000). Power. – London and New York: Routledge.
  • Skidelsky, R. (2005). John Maynard Keynes 1883–1946: Economist, Philosopher, Statesman. М. Moscow school of political studies, 1. (In Russian).
  • Schumpeter, J. A. (2011). Ten Great Economists: From Marx to Keynes. М. Publishing House Of The Gaidar Institute. (In Russian).
  • Schumpeter, J. A. (2001). History of Economic Analysis, Saint Petersburg. School of Economics. (In Russian).
  • Weber, М. (1990). Selected works. М.Progress. (In Russian).
  • Solnzev, S, Tugan-Baranovsky, M. and Bilimovich, A. (2009). Social theory of Distribution. M. Nauka. (In Russian).
  • Toffler, A. (1984). Powershift: knowledge, wealth and violence at the edge of the 21st century. New York: Bantam Books p.
  • Wirtschaftspolitik von Artur Woll. (1992). 2. Uberarb.u.erg.Abfl. Munchen. Vahlen.
  • Zombart, W. (1994). Bourgeois. М. Nauka. (In Russian).
Publisher: Ltd. "Humanitarian perspectives"
Founder: Ltd. "Humanitarian perspectives"
Online ISSN: 2412-6047
ISSN: 2078-5429