The path of catching and the path of innovative development: what will Russia choose?

Abstract

Over the past half century, global GDP growth has been exceptionally rapid, helped by significant labor force growth and increased labor productivity. Employment growth from 1964 to 2014 decreased from 1.7 to 0.3 % per year. Over the past 20 years, overall productivity growth in OECD countries has also slowed significantly. However, the introduction of digital technology is already changing the picture for the better in developed countries. Therefore, achieving the desired economic growth is seen in increasing labor productivity through the active development and implementation of key technologies of the Fourth Industrial Revolution, but with the need to effectively redistribute existing resources within countries, both developed and developing. As a hypothesis, the thesis was put forward on the need for scientific and technological development as the main answer to the challenges of our time with the aim of further growth and development of the Russian economy. However, the study proved that in modern conditions the main solution for Russia is a more efficient distribution of existing factors of production and, as a result, economic activity. At the same time, further technological and innovative development is necessary from the point of view of long-term economic growth, since the catch-up path has its own logical limit.