The influence of intellectual capital and innovations on the economic development of the world and national economy

Economic Annals-ХХI: Volume 190, Issue 5-6(2), Pages: 12-22

Citation information:
Sazonets, O., Nykonchuk, V., & Kozakevych, A. (2021). The influence of intellectual capital and innovations on the economic development of the world and national economy. Economic Annals-XXI, 190(5-6(2)), 23-32. doi:

Olga Sazonets
D.Sc. (Economics), Professor;
Department of Transport Technologies and International Logistics,
University of Customs and Finance
2/4 Volodymyr Vernadsky Str.,
Dnipro, 49000, Ukraine

Viktoriia Nykonchuk
PhD (Economics), Associate Professor,
Department of Transport Technologies and Technical Service,
National University of Water and Environmental Engineering
11 Soborna Str., Rivne, 33028, Ukraine

Antonina Kozakevych
PhD (Economics), Associate Professor;
Department of Philosophy,
Economics and Management of Education,
Rivne Regional Institute of Postgraduate Pedagogical Education
74 Vyacheslav Chornovil Str., Rivne, 33000, Ukraine

The influence of intellectual capital and innovations on the economic development of the world and national economy


We consider in the study that the existing economic model will inevitably be replaced by a new effective model of creative and competitive economic development. Technological innovations have caused the rapid growth of the world economy. As the result, production costs have been reduced and the profits of corporations in many sectors of the world economy have increased. Innovation is a factor of rise in Kondratiev cycles. Innovations give an impetus to increase the value added of a country’s economy. The article asserts that intellectual capital is the basis and is becoming an increasingly important component of national and world development.

The article has investigated in which way innovation activities affect real GDP and has suggested the answer to the question on what stage of the Kondratiev cycles the world economy is. Innovation as an object of intellectual capital is introduced in the form of patents and other intellectual property.

We have analyzed the relevant trends for 2004-2020. The research has determined that by 2030, a significant increase in the number of patent applications is expected. The article has examined the dependence of the world real GDP on the number of filed patent applications in the world by constructing trend lines. It has been found that the largest approximation with a coefficient of determination greater than 0.92 is a polynomial trend line, in which the dynamic growth with a small number of patent applications is inhibited by a sharp increase in their number.

The research has defined that the phases of the cyber revolution correlate with Kondratiev waves. The modern phase is characterized by the rapid generation and dissemination of innovations. The article has examined the filing of patent applications in the top 20 countries around the world, among which the leading positions are occupied by China, the USA, and Japan.

By constructing trend lines, the research has analyzed the dependence of Ukraine’s real GDP on the number of innovations and has shown that there is no such clear dependence. This indicates the raw material orientation of the Ukrainian economy. The article states that it is extremely important for Ukraine to make the transition from the triad model (with state-monopoly capitalism) to the national economic model, which corresponds to the approaches of the people’s capitalism.

Keywords: Innovation; Patent; Trend; Countries of the World; Intellectual Capital; Kondratiev Waves (Cycles)

JEL Classіfіcatіon: F20; O33

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.



  1. Agostini, L., Galati, F., & Gastaldi, L. (2019). The digitalization of the innovation process Challenges and opportunities from a management perspective. European journal of innovation management, 23(1), 1-12.
  2. Cao, Y., Wan, N., Zhang, H., Zhang, X., & Zhou, Q. (2020). Linking environmental regulation and economic growth through technological innovation and resource consumption: Analysis of spatial interaction patterns of urban agglomerations. Ecological indicators, 112, 106062.
  3. Creative economy. (2019). World Intellectual Property Indicators 2019.
  4. Farre-Mensa, J., Hegde, D., & Ljungqvist, A. (2019). What Is a Patent Worth? Evidence from the US Patent «Lottery». Journal of finance, 75(2), 639-682.
  5. Federal Service for Intellectual Property (Rospatent). (2020). Annual report 2020.
  6. Federal Service for Intellectual Property (Rospatent). (2007). Annual report 2007.
  7. Federal Service for Intellectual Property (Rospatent). (2016). Annual report 2016.
  8. Federal State Statistics Service. (2020). Annual report. (in Russ.)
  9. Geldres, V. V., Monreal-Pérez, J., Tornavoi-Carvalho, D., & Tello Gamarra, J. E. (2018). A new measure of international product innovation. Contemporary economics, 12(4), 367-380.
  10. Glód, W. (2018). Transformational leadership style in the relationship between innovation and efficiency of healthcare units in Poland. Oeconomia copernicana, 9(4), 731-753.
  11. Granada, Y. A., & Mejia, J. F. (2020). Does innovation generate or destroy employment? An application for manufacturing and service firms. Cuadernos de economia-spain, 122(43), 191-212,
  12. Grinin, L. E, & Grinin, A. L. (2015). Cybernetic revolution and the sixth technological mode. Historical psychology and sociology of history, 1, 172-197. (in Russ.)
  13. Heij, C., Volberda, H. W., Van den Bosch, F. A. J., & Hollen, R. M. A. (2019). How to leverage the impact of R&D on product innovation? The moderating effect of management innovation. R&D management, 50(2), 277-294.
  14. Hirooka, M. (2006). Innovation dynamism and economic growth: a nonlinear perspective. Edward Elgar Pub.
  15. Hlaváček, P. (2017). Use of innovation vouchers for the regional innovation environment development. Еconomic Annals-XXI, 166(7-8), 91-95.
  16. International Monetary Fund. (2021). Official web-site.
  17. Karmeni, K., De La Villarmois, O., & Mansouri, F. (2017). Control and Innovation: A study of the Mediating Effect of Knowledge Diffusion in Franchise Networks. Comptabilite controle audit, 23(3), 63-95. (in Spanish)
  18. Kolesnikov, Y., Epifanova, T., Usenko, A., Parshina, E., & Ostrovskaya, V. N. (2016). The Peculiarities of State Regulation of Innovation Activities of Enterprises in the Global Economy. Contemporary economics, 10(4), 343-352.
  19. Lazyrin, M. (2015). Development of the sixth technological mode. Society: politics, economics, law. (in Russ.)
  20. Moreira, C. V. Jr., de Souza Fernandes, M. B., Rodrigues, R. C., de Sauza Antunes, A. M., & de Carvalho, S. P. (2017). Subjectivity of appraisals of inventive step in patent examinations as an element of uncertainty in the potential for technological innovation. Brazilian journal of operations & production management, 14(4), 519-528.
  21. Nykonchuk, V. (2020). Methodology of quality assurance and development of intellectual capital in the national economy. Rivne: Volyn charms.
  22. Pearse, N. J., & Peterlin, J. (2019). Artistic creative social entrepreneurs and business model innovation. Journal of research in marketing and entrepreneurship, 21(2), 149-162.
  23. Praid, V., & Korotayev, A. (Eds.). (2008). New technologies and the continuation of human evolution? Transhumanistic project of the future. M: URSS (in Russ.).
  24. Senent-Bailach, C., & Rey-Martí, A. (2017). Creating Entrepreneurship through Social Innovation: The Case of I-Box Create. Сontemporary economics, 11(4), 479-486.
  25. Silva, M., Santos, D., & Carvas, Ph. (2020) Intellectual Property and Patenting Software Period 2012-2017. International journal of human capital and information technology professionals, 11(2), 64-78.
  26. Soskin, O. (2014). National capitalism: the economic model for Ukraine. Кyiv: IST.
  27. State Statistics Service of Ukraine. (2020). Annual report. Official web-site. (in Ukr.)
  28. Trautrims, A., MacCarthy, B. L., & Okade, Ch. (2017) Building an innovation-based supplier portfolio: The use of patent analysis in strategic supplier selection in the automotive sector. International journal of production economics, 194(SI), 228-236.
  29. Ukrpatent (Ukrainian Intellectual Property Institute). (2007). Annual report 2007. Official web-site. (in Ukr.)
  30. Ukrpatent (Ukrainian Intellectual Property Institute). (2019). Annual report 2019. Official web-site. (in Ukr.)
  31. Vovchenko, N. G., Ivanova, O. B., Kostoglodova, E. D, Otrishko, O. M., & Dzhu, S. O. (2016). Innovations and Fighting Global Economic Problems. Сontemporary economics, 10(4), 289-298.
  32. Vzdorova, L. (2014). Sixth technological mode: reversibility of singularity in Kondratiev cycles. International Research Journal, 46(4), 96-97. (in Russ.)
  33. World Intellectual Property Organization (WIPO). (2020). WIPO IP Facts and Figures 2019.
  34. World Intellectual Property Organization (WIPO). (2021). WIPO IP Facts and Figures 2020.

Received 14.04.2021
Received in revised form 19.05.2021
Accepted 21.05.2021
Available online 10.07.2021