IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/121948.html
   My bibliography  Save this paper

Advance Financing Innovations and the Radical Change Economic Development

Author

Listed:
  • Bazhal, Iurii

Abstract

. The methodological searching the approaches to overcoming the current crisis phenomena is constricted by inability the mainstream economic theory to explain fundamental economic nature these processes. But the consequences from phenomena of radical change that causes current crises and economic measures to replying are like the causes of crises that are explained by theory of economic development of Josef Schumpeter. This article is aimed to reveal practical meanings of some apply findings of Schumpeter to improve the actual economic policy. The article presents analysis that demonstrate importance to recognize ‘Schumpeter’s innovations’ as a special factor for economic growth that generates the increasing the aggregated added value of a country separately from the processes related to productivity growth of the existing traditional resources. It allows to clarify the reasons current economic and financial crises with the Schumpeter’s theory of "advances-economics", where there is explanation the nature of financial resources for innovation development which acquire has got a shape of the artificial credit expansion. This extension of money supply is not the problem of economic growth but its mandatory factor. The article demonstrates the volume of production of innovative enterprises in Europe is in principle comparably with the value of GDP. The advance monetary resources could be presented by comparing the monetary aggregates M1, M2, M3 that allows to calculate the available monetary potential for advance financing for innovations. The given analysis confirms practical meanings of the proposed macro monetary analysis financial resources innovation development.

Suggested Citation

  • Bazhal, Iurii, 2021. "Advance Financing Innovations and the Radical Change Economic Development," MPRA Paper 121948, University Library of Munich, Germany, revised Sep 2022.
    • Handle: RePEc:pra:mprapa:121948
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/121948/1/MPRA_paper_121948.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philippe Aghion & Peter Howitt, 2009. "The Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012634, April.
    2. Peter C. B. Phillips & Donggyu Sul, 2009. "Economic transition and growth," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(7), pages 1153-1185.
    3. George A. Akerlof & William T. Dickens & George L. Perry, 2000. "Near-Rational Wage and Price Setting and the Long-Run Phillips Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 1-60.
    4. Blyth, Mark, 2013. "Austerity: The History of a Dangerous Idea," OUP Catalogue, Oxford University Press, number 9780199828302.
    5. Lucas, Robert E, Jr, 1996. "Nobel Lecture: Monetary Neutrality," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 661-682, August.
    6. Steven N. Durlauf & Paul A. Johnson & Jonathan R. W. Temple, 2009. "The Methods of Growth Econometrics," Palgrave Macmillan Books, in: Terence C. Mills & Kerry Patterson (ed.), Palgrave Handbook of Econometrics, chapter 24, pages 1119-1179, Palgrave Macmillan.
    7. Váry, Miklós, 2021. "The long-run real effects of monetary shocks: Lessons from a hybrid post-Keynesian-DSGE-agent-based menu cost model," Economic Modelling, Elsevier, vol. 105(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark Knell & Simone Vannuccini, 2022. "Tools and concepts for understanding disruptive technological change after Schumpeter," Jena Economics Research Papers 2022-005, Friedrich-Schiller-University Jena.
    2. James Malley & Apostolis Philippopoulos & Jim Malley, 2023. "Stimulating Long-Term Growth and Welfare in the U.S," CESifo Working Paper Series 10658, CESifo.
    3. Soriano, Franklin A. & Villano, Renato A. & Fleming, Euan M. & Battese, George E., 2018. "What’s driving innovation in small businesses in Australia? The case of the food industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(1), October.
    4. Blagov, Boris & Funke, Michael, 2019. "The Regime-Dependent Evolution Of Credibility: A Fresh Look At Hong Kong'S Linked Exchange Rate System," Macroeconomic Dynamics, Cambridge University Press, vol. 23(6), pages 2434-2468, September.
    5. Sulekha Hembram & Souparna Maji & Sushil Kr. Haldar, 2019. "Club Convergence among the Major Indian States During 1982–2014: Does Investment in Human Capital Matter?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 184-204, September.
    6. Tobias Schlegel & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2022. "Innovation effects of universities of applied sciences: an assessment of regional heterogeneity," The Journal of Technology Transfer, Springer, vol. 47(1), pages 63-118, February.
    7. Impullitti, Giammario & Akcigit, Ufuk & Ates, Sina T., 2018. "Innovation and Trade Policy in a Globalized World," CEPR Discussion Papers 15804, C.E.P.R. Discussion Papers.
    8. Magnus Henrekson & Dan Johansson & Johan Karlsson, 2024. "To Be or Not to Be: The Entrepreneur in Neo-Schumpeterian Growth Theory," Entrepreneurship Theory and Practice, , vol. 48(1), pages 104-140, January.
    9. Alireza Motameni, 2021. "The Impact of Oil Rent, Currency Overvaluation, and Institution Quality, on Economic Growth of Oil-Rich Countries: A Heterogeneous Panel Data Study," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 483-493.
    10. Benzaim, Samia & Ftiti, Zied & Khedhaouria, Anis & Djermane, Rebai, 2023. "US foreign investments: Technology transfer, relative backwardness, and the productivity growth of host countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 275-295.
    11. Rafael Torres Gaviria, 2022. "Horsemen of the apocalypse: The Mongol Empire and the great divergence," Documentos CEDE 20533, Universidad de los Andes, Facultad de Economía, CEDE.
    12. Abdul Jalil & Abdul Rauf & Li Han, 2024. "Financial Development, R&D and Knowledge Production: Empirical Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14617-14642, September.
    13. Federico D’Aloia & Philippe Gugler, 2024. "Impact of Covid-19 on the Economic Growth of ASEAN Countries: Convergence or Divergence?," International Journal of Global Business and Competitiveness, Springer, vol. 19(2), pages 83-95, October.
    14. Aghion, Philippe & Bergeaud, Antonin & Lequien, Matthieu & Melitz, Marc J. & Zuber, Thomas, 2021. "Opposing firm-level responses to the China shock: horizontal competition versus vertical relationships," LSE Research Online Documents on Economics 113915, London School of Economics and Political Science, LSE Library.
    15. Gil, Pedro Mazeda & Iglésias, Gustavo & Guimarães, Luís, 2023. "Endogenous growth and monetary policy: How do interest-rate feedback rules shape nominal and real transitional dynamics?," Journal of International Money and Finance, Elsevier, vol. 138(C).
    16. Gebs, Mehdi & Nabi, Mahmoud Sami, 2021. "The economic impacts of digitalization through an extended input-output model: theory and application to Tunisia," MPRA Paper 113299, University Library of Munich, Germany.
    17. Sorek Gilad, 2021. "Optimal Industrial Policies in a Two-Sector-R&D Economy," The B.E. Journal of Macroeconomics, De Gruyter, vol. 21(1), pages 73-96, January.
    18. Angelopoulos, Angelos & Economides, George & Liontos, George & Philippopoulos, Apostolis & Sakkas, Stelios, 2022. "Public redistributive policies in general equilibrium: An application to Greece," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).
    19. Alexeeva-Alexeev, Inna & Mazas-Perez-Oleaga, Cristina, 2024. "Do ICT firms manage R&D differently? Firm-level and macroeconomic effects on corporate R&D investment: Empirical evidence from a multi-countries context," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    20. Jean-Marie Le Page, 2011. "Real Interest Rate and Growth Rate: Theory and Empirical Evidence," Frontiers in Finance and Economics, SKEMA Business School, vol. 8(2), pages 136-152, October.

    More about this item

    Keywords

    Keywords: Schumpeter’s theory of economic development; Innovations; Advances-economics; Monetary policy; Economic crises.;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:121948. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.