Abstract:The main purpose of this study is to answer the question of how innovative Belarusian economy is. Its innovativeness has been assessed through an in-depth analysis of Belarus' position in international trade, especially in highand medium-high-technology goods, on the back of the assumption that any competitive advantages possessed in them testify to the economy's high innovativeness. The analysis of the dynamics of long-term revealed comparative advantages in Belarusian foreign trade by using Balassa's RCA methodology and covering the years 2000-2014, has shown that the country was generally characterized by low innovativeness, as evidenced by the possession of such advantages only in trade in goods of relatively low technological intensity (medium-low technology). Meanwhile, in hi-tech goods (high and medium-high technology), Belarus did not have any (or only had relatively small) long-term revealed comparative advantages. Moreover, Belarus' competitiveness in international trade deteriorated over that period, not only regarding high and medium-high technology goods but also in foreign trade overall. This seems to be, amongst others, the consequence of low efficiency of the country's current innovation policy.
JEL Classification
IntroductionIn the contemporary time, amidst the advancement of globalization and internationalization of business activities on a global scale, it is becoming increasingly difficult to meet the growing competition in the international markets for goods and factors of production, which is one of the important reasons for the strong diversification of economic growth and development of individual countries in the twenty-first century (Hämäläinen, 2003). Experiences of many countries around the world, being a kind of empirical exemplification of a number of different theoretical concepts, indicate that today the most important factors of international competitiveness, as well as of the aforementioned economic growth, are -apart from wider institutional factors -human capital and essential innovations/innovativeness of the economy (Aghion & Howitt, 1992;Arrow, 1962;Atkinson & Ezell, 2012; Drucker, 1992;Lucas, 1988; Lundval, 1992;Romer, 1989). For these reasons, it seems worthwhile to take a closer look at the competitiveness of Belarusian economy, being a consequence of its level of innovativeness, to answer the question how this largest European country without access to the sea, strongly associated with Russia and the post-Soviet economic area, manages to cope in an era of ever-fiercer international competition increasingly based on knowledge, modern technologies, and innovations. Another important reason for analyzing this issue is a striking shortage of research papers concerning Belarus and its economy in international economic literature, including also those covering research on the innovativeness and competitiveness of Belarusian economy. In this article, an attempt has been made to assess the innovativeness of Belarus through the prism of the competitiveness of its econo...