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: https://doi.org/10.21003/ea.V190-03
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
onsazonets@gmail.com
ORCID ID: https://orcid.org/0000-0001-6521-7815
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
nykonchuk_v_m@ukr.net
ORCID ID: https://orcid.org/0000-0001-7515-6016
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
kas-59@ukr.net
ORCID ID: https://orcid.org/0000-0002-6181-1574
The influence of intellectual capital and innovations on the economic development of the world and national economy
Abstract
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.
DOI: https://doi.org/10.21003/ea.V190-03
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Received 14.04.2021
Received in revised form 19.05.2021
Accepted 21.05.2021
Available online 10.07.2021