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Economic Analysis: Theory and Practice
 

Innovation as an instrument of present-day transformation of the economy: A theoretical aspect

Vol. 16, Iss. 2, FEBRUARY 2017

PDF  Article PDF Version

Received: 9 March 2016

Received in revised form: 18 April 2016

Accepted: 16 May 2016

Available online: 27 February 2017

Subject Heading: Innovation

JEL Classification: О10, О30

Pages: 251-259

https://doi.org/10.24891/ea.16.2.251

Nazvanova K.V. Vladimir State University named after Alexander and Nikolay Stoletovs, Vladimir, Russian Federation
kalateya_flower@mail.ru

Importance The article considers the nature of innovation and innovative development from a theoretical perspective.
Objectives The aim of the study is to analyze key approaches to determination of the substance of innovation, identify specifics enabling innovation to be a key instrument for economy transformation to innovation pattern.
Methods The study employs the comparative method of analysis.
Results The paper states that innovation is considered form three points of view, i.e. as a change, a process, and as a result; determines a correlation between the concepts of novation, novelty, and innovation, and gives reasons for impossibility of their identical usage. Innovation is defined as the end result of activity (process) of introduction of novation (idea, product, technology) in order to change qualitative characteristics of the object of control for technical, scientific, commercial or other effect. Theoretical and practical significance of findings is in the elaboration of theoretical basis of innovation-driven development of economy, which allows to create a holistic view of specifics of innovative economy formation.
Conclusions The key precondition for innovative economy formation is increased efficiency and effectiveness of all its sectors, as well as domination of innovation-based principle of economy management.

Keywords: innovation, innovative development, innovation-driven economy

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