Innovative development of the regions and multiplier-based performance impact assessment of local resources

Abstract

<jats:p> </jats:p><jats:p>One of the most important tasks of innovative development of a country and its regions is building an innovative vector of development essential for reaching a competitive level and economic growth. The authors have explored tasks and issues and tasks connected with quantitative explanation of still unresolved dependence of export-oriented countries’ economic growth on export volumes and prices in the foreign market. They used a three- way model of innovative development to study the productivity of resources in different areas of development.</jats:p><jats:p>As a result of their research the authors introduced a different approach to the notion of innovative development. It allows researchers to view it as a system and integrity in three co-related directions: technique and technology, currency and finance, and society and politics. Thus, they have the opportunity to estimate how much each sector of national (regional) economy individually and all of them together contribute to the economic growth. This approach provides the opportunity to examine the basic holistically co-related directions which allow measuring the level of innovative development, estimating the economy’s innovativeness, determining and viewing differently the innovative paradigm. The authors used mathematical model to study and introduce productivities of major types of resources. They point out that effective functioning of economy (including financial) makes it possible to develop industries gradually and to smooth out economic development of the regions, to avoid structural shifts and disproportions in economy which finally results in the possibility of productive implementation of programs of the country’s innovative development.</jats:p><jats:p>The authors have systematically studied the correlation between the productivity of resources and the achievement of systematic multiplier effect (there is no wide research found on this problem, the authors dealt with individual indicators of multiplier effect)</jats:p>